Thanks to all for the kind comments - it never even occurred to me to look up Cyrus Chambers, I will!
As far as I know, the current Guiness book world record for the smallest steam engine is a tiny horizontal engine that is less than one inch long, made by a machinist in India. But, that is for the engine alone, no boiler. This little engine also has a boiler, so maybe it would still hold a record for the smallest engine with a boiler (fired by a single small match, I assume)?
I wish that the photo showed more detail, unfortunately it is not any clearer looking at the postcard in hand than it is on the photos I have posted here. Maybe I will give the Franklin Institute a call.