The dark blue highlighted examples are the best to talk about Hoover's understanding of the government's role:
I) "it would impair the very basis of liberty and freedom"
II) "every alley of which leads to the destruction of self-government"
They show that Herbert Hoover (1874-1964) believed the federal government should not take a direct part in states' governments and the economic system in order to protect liberty and freedom.
That is, Hoover believed that liberty and freedom are natural and exist as long as the government doesn't force itself upon individuals' lives. Thus economic problems as the Great Depression should be solved by the states and by the strengthening of private businesses as banks.