"The Chronicle of Young Satan" (ca. 1897–1900, unfinished), published posthumously in Mark Twain's Mysterious Stranger Manuscripts (1969), ed. William Merriam Gibson ( pp. 165–166 http://books.google.com/books?id=LDvA2xcYZKcC&pg=PA165 in the 2005 paperback printing, ).
Source: The Mysterious Stranger and Other Curious Tales
Context: Your race, in its poverty, has unquestionably one really effective weapon—laughter. Power, Money, Persuasion, Supplication, Persecution—these can lift at a colossal humbug,—push it a little—crowd it a little—weaken it a little, century by century: but only Laughter can blow it to rags and atoms at a blast. Against the assault of Laughter nothing can stand.