(If you think periodicals reprint stories and items from each other too much these days, you haven't read too many 19th century periodicals. This story was originally in the Jewish Chronicle Dec. 14, 1849 (pp. 77-78), and republished in many British newspapers until it reached the Straits Times of Singapore in 1851.)
The story concerns Hungarian revolutionary and hero Lajos Kossuth (1802-94), who was beloved by Jews for his fair and enlightened attitude toward the Jews (see here for the Occident's coverage of him in 1849 which gives a flavor of the enthusiasm he had roused in Hungarian Jews - including the very frum ones).
In the story, Kossuth's father, an attorney (like him) was involved in a very contentious lawsuit against Rabbi Moshe Teitelbaum (who is unnamed here). During this period, two sons of the elder Kossuth died and indeed he himself died. The rumor spread that this happened because the Yismach Moshe cursed him. It so frightened people that the widow, and mother of the last remaining son, visited him to request a blessing for him. After conversing with the boy, and apparently liking what he saw, the Rebbe placed his hands on his head and blessed him, applying the words of Psalam 60:6 to him and punning on his name: נָתַתָּה לִּירֵאֶיךָ נֵּס לְהִתְנוֹסֵס מִפְּנֵי קֹשֶׁט סֶלָה, "Thou hast given a banner to them that fear Thee, that it may be displayed because of the truth. Selah."
