"Yes, like once America was first starting out, we wouldn't have needed such a large government as today. But with the growth of population in America, and the growth in land. We need the Federal Government to keep certain things in control. Like the management of the states, or the management of the military."
He is talking about power of the government, evident by him talking about its management and keeping things under control.
"If anything it needs a smaller one."
He is also talking about government power. Not number of reps.