[quote=Kangaroo]
Well I hope that Krakens can swim in rivers.Actually Kad what's the rule on River Krakens?
[/quote]

Those are called "Squid" and are much smaller ;)

Kraken are larger than Galleons, Galleons also can't go down rivers. :p

[quote=Jorick]
Speaking of lacking a navy, that would mean that navy gold simply goes to waste, right?If so, it'd probably be worth it then to just get a bunch of crappy river-capable ships (assuming you have rivers) just in case it some day becomes useful.
[/quote]

Quite right. If you choose to begin with no coast or navy the points "go to waste" but as time goes on and, say, you took a coastal province with (again example) a small city, say a River Delta onto the Ocean, then that city could begin making warships for you. 

These rules only cover how a nation begins, as time goes on your nations will grow noticeably.