DREYFUS MONEY MARKET INSTRUMENTS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
During the last six months U.S. economic activity has declined gradually.
As might be expected, this brought about a drop in interest rates.
As far as Government securities are concerned, other factors were at work
as well. The evident determination of the Republican Congress to reduce
Government spending, and thus hopefully cut the deficit, also had its effect
on interest rates. It is too early to tell how effective the talk of budget
cutting in Washington will be in the final analysis. However, if it brings
about a lower level of Government borrowing, that would certainly be a major
factor in setting interest rates.
In this environment, we are pleased that Dreyfus Money Market
Instruments, Inc. has maintained competitive yields. For the six-month fiscal
period ended June 30, 1995, the Fund's Government Securities Series produced
an annualized yield of 5.16%, or an annualized effective yield of 5.29% after
compounding. The respective yields for the Money Market Series were 5.39% and
5.53% after compounding.*
We achieved these yield levels by lengthening maturities gradually during
the six-month period. This was done in anticipation of lower interest rates,
which became more and more likely as the economy gave continued signs of
slowing down.
The Federal Reserve Board, which raised interest rates seven times during
1994 and early 1995 to head off inflation, became concerned that the drop in
economic performance might turn into an actual business recession.
Accordingly, in early July the Federal Reserve reversed course and made a
modest cut in the Federal Funds rate.
As this letter is written, the economy has distinctly cooled off from the
frothy activity that prevailed last year. Thus one could say that the Fed's
policies have been successful. Inflation has been held at bay and few
observers believe that the "soft landing" will turn into a full-blown
economic recession.
However, the Federal Reserve showed laudable caution in the July
reduction of short-term rates. If more of that medicine is needed, we feel
that the Fed will not hesitate to act accordingly. Nonetheless, the central
bank must be ever watchful lest rate-cutting bring on the recurrence of
inflation which the Fed has so strenuously sought to avoid.
In our opinion, the money market has already discounted the possibility
of further Fed moves to lower interest rates. To a certain extent, that is
already built into current market prices. Our strategy under these
circumstances is to remain in the long end of the market as long as
necessary, in an effort to maintain the best possible levels of yields.
We appreciate the opportunity to put your cash to work in the money
market and will continue to exert our best efforts to obtain competitive
returns on your behalf.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
July 12, 1995
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., Money Market Series
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-26.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
Bayerische Vereinsbank (London)
6.10%, 7/11/96.......................................................... $ 7,000,000 $ 7,000,000
Fuji Bank, Ltd. (Yankee)
6.25%, 8/7/95........................................................... 7,000,000 7,000,000
Industrial Bank of Japan Ltd. (Yankee)
6.25%, 10/23/95......................................................... 7,000,000 7,000,000
Mitsubishi Bank Ltd. (Yankee)
6.43%-6.55%, 11/27/95-1/31/96........................................... 8,000,000 8,006,762
Sumitomo Bank Ltd. (London)
6.05%, 7/17/95.......................................................... 5,000,000 5,000,040
SwedBank (Yankee)
6.25%, 7/21/95.......................................................... 5,000,000 5,000,000
--------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $39,006,802)...................................................... $ 39,006,802
==============
BANKERS ACCEPTANCES-7.3%
Dai-Ichi Kangyo Bank, Ltd.
5.81%, 12/11/95......................................................... $ 5,200,000 $ 5,066,738
Sanwa Bank Ltd.
5.86%, 11/17/95......................................................... 6,000,000 5,867,487
--------------
TOTAL BANKERS ACCEPTANCES (cost $10,934,225)................................ $ 10,934,225
==============
COMMERCIAL PAPER-31.2%
Budget Funding Corp.
6.01%, 8/8/95........................................................... $ 7,000,000 $ 6,956,258
Den Danske Corp. Inc.
6.35%, 10/10/95......................................................... 8,000,000 7,861,966
Ford Motor Credit Co.
6.33%-6.34%, 1/9/96-1/26/96............................................. 8,000,000 7,733,296
General Motors Acceptance Corp.
6.32%-6.43%, 7/27/95-10/10/95........................................... 6,000,000 5,921,159
Mitsubishi Motors Credit of America Inc.
6.01%, 9/20/95 (a)...................................................... 7,000,000 6,906,760
NYNEX Corp.
6.21%, 10/12/95......................................................... 2,000,000 1,965,438
Sears Roebuck Acceptance Corp.
6.40%, 10/2/95.......................................................... 5,000,000 4,919,916
Spintab AB
5.90%, 10/19/95......................................................... 2,000,000 1,964,678
DREYFUS MONEY MARKET INSTRUMENTS, INC., Money Market Series
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
_______ _______
SwedBank Inc.
6.25%, 7/24/95.......................................................... $ 2,500,000 $ 2,490,233
--------------
TOTAL COMMERCIAL PAPER (cost $46,719,704)................................... $ 46,719,704
==============
CORPORATE NOTES-22.7%
Avco Financial Services
6.28%, 4/1/96 (b)....................................................... $ 5,000,000 $ 5,000,000
Bear Stearns Companies Inc.
5.68%, 1/26/96 (b)...................................................... 8,000,000 8,000,000
General Electric Capital Corp.
6.35%, 2/9/96 (b)....................................................... 7,000,000 7,000,000
Lehman Brothers Holdings Inc.
6.45%, 5/16/96 (b)...................................................... 7,000,000 7,000,000
Merrill Lynch & Co. Inc.
6.29%, 7/2/96 (b)....................................................... 7,000,000 6,998,646
--------------
TOTAL CORPORATE NOTES (cost $33,998,646).................................... $ 33,998,646
==============
U.S. GOVERNMENT AGENCIES-13.3%
Federal National Mortgage Association
Floating Rate Notes
6.21%, 6/20/97 (b)
(cost $19,996,322)...................................................... $ 20,000,000 $ 19,996,322
==============
TIME DEPOSITS-3.4%
Fleet Bank of New York N.A. (Cayman)
6.38%, 7/3/95........................................................... $ 4,000,000 $ 4,000,000
Republic National Bank of New York (London)
5.94%, 7/3/95........................................................... 1,095,000 1,095,000
--------------
TOTAL TIME DEPOSITS (cost $5,095,000)....................................... $ 5,095,000
==============
TOTAL INVESTMENTS
(cost $155,750,699)............................................ 103.9% $155,750,699
======= ===============
LIABILITIES, LESS CASH AND RECEIVABLES............................. (3.9%) $ (5,774,537)
======= ===============
NET ASSETS......................................................... 100.0% $149,976,162
======= ===============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by an irrevocable letter of credit.
(b) Variable interest rate - subject to periodic change.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS MONEY MARKET INSTRUMENTS, INC., Government Securities Series
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-40.7% PURCHASE AMOUNT VALUE
______ _______ _______
<S> <C> <C> <C>
9/7/95..................................................... 5.58% $ 25,000,000 $ 24,740,278
10/12/95................................................... 6.03 25,000,000 24,581,563
10/19/95................................................... 6.09 45,000,000 44,190,736
10/26/95................................................... 5.95 15,000,000 14,718,469
11/16/95................................................... 5.95 10,000,000 9,779,583
11/24/95................................................... 5.79 10,000,000 9,771,875
12/7/95.................................................... 5.65 30,000,000 29,272,465
12/21/95................................................... 5.54 35,000,000 34,093,912
--------------
TOTAL U.S. TREASURY BILLS (cost $191,148,881).................. $191,148,881
==============
U.S. TREASURY NOTES-28.7%
8.875%, 7/15/95............................................ 5.98% $ 25,000,000 $ 25,028,455
4.25%, 7/31/95............................................. 6.01 20,000,000 19,970,395
4.625%, 8/15/95............................................ 5.98 35,000,000 34,939,282
8.50%, 8/15/95............................................. 6.09 25,000,000 25,070,833
3.875%, 9/30/95............................................ 5.83 30,000,000 29,841,440
--------------
TOTAL U.S. TREASURY NOTES (cost $134,850,405).................. $134,850,405
==============
REPURCHASE AGREEMENTS-29.8%
Aubrey G. Lanston & Co. Inc.
dated 6/30/95, due 7/3/95 in the amount of $3,001,550
(fully collateralized by $3,070,000 U.S. Treasury
Bills, due 8/31/95, value $3,040,835).......................... 6.20% $ 3,000,000 $ 3,000,000
Bear, Stearns & Co. Inc.
dated 6/30/95, due 7/3/95 in the amount of $50,025,417
(fully collateralized by $50,400,000 U.S. Treasury
Notes 4.00% to 4.25%, due from 12/31/95 to 1/31/96,
value $50,709,250)............................................. 6.10 50,000,000 50,000,000
Daiwa Securities America Inc.
dated 6/30/95, due 7/3/95 in the amount of $50,025,521
(fully collateralized by $12,700,000 U.S. Treasury
Notes, 4.25%, due 11/30/95,
and $38,910,000 U.S. Treasury Bills, due
12/14/95, value $50,550,715)................................... 6.12 50,000,000 50,000,000
First Interstate Bank of California
dated 6/30/95, due 7/3/95 in the amount of $1,316,644
(fully collateralized by $1,302,000 U.S. Treasury
Notes 7.375%, due 5/15/96, value $1,330,481)................... 5.87 1,316,000 1,316,000
Nikko Securities Co. International Inc.
dated 6/30/95, due 7/3/95 in the amount of $10,005,083
(fully collateralized by $9,940,000 U.S. Treasury
Notes 7.625% , due 4/30/96, value $10,206,392)................. 6.10 10,000,000 10,000,000
DREYFUS MONEY MARKET INSTRUMENTS, INC., Government Securities Series
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
REPURCHASE AGREEMENTS (CONTINUED) PURCHASE AMOUNT VALUE
______ _______ _______
Nomura Securities International Inc.
dated 6/30/95, due 7/3/95 in the amount of $5,002,542
(fully collateralized by $5,380,000 U.S. Treasury
Bills, due 5/30/96, value $5,104,275).......................... 6.10% $ 5,000,000 $ 5,000,000
U.B.S. Securities Inc.
dated 6/30/95, due 7/3/95 in the amount of $20,010,167
(fully collateralized by $20,945,000 U.S. Treasury
Bills, due 12/14/95, value $20,400,430)........................ 6.10 20,000,000 20,000,000
--------------
TOTAL REPURCHASE AGREEMENTS (cost $139,316,000)................ $139,316,000
==============
TOTAL INVESTMENTS
(cost $465,315,286).............................. 99.2% $465,315,286
====== ============
CASH AND RECEIVABLES (NET)........................... .8% $ 3,859,125
====== ============
NET ASSETS........................................... 100.0% $ 469,174,411
====== ============
</TABLE>
See independent accountants' review report and notes to financial staements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
_______ _______
<S> <C> <C>
ASSETS:
Investments in securities, at value (including repurchase agreements of
$139,316,000 for the Government Securities Series)-Note 2(a,b)........ $155,750,699 $465,315,286
Cash.................................................................... 457,557 1,191,031
Interest receivable..................................................... 925,883 3,087,567
Prepaid expenses........................................................ 59,653 61,653
__________ ___________
157,193,792 469,655,537
___________ __________
LIABILITIES:
Due to The Dreyfus Corporation.......................................... 110,951 333,685
Payable for investment securities purchased............................. 7,000,000 __
Accrued expenses........................................................ 106,679 147,441
____________ __________
7,217,630 481,126
____________ __________
NET ASSETS.................................................................. $149,976,162 $469,174,411
============ ===========
REPRESENTED BY:
Paid-in capital......................................................... $149,976,927 $469,162,156
Accumulated net realized gain (loss) on investments..................... (765) 12,255
__________ _____________
NET ASSETS, at value........................................................ $149,976,162 $469,174,411
============ =============
Shares of Common Stock outstanding:
Money Market Series
Equivalent to a net asset value per share of $1.00 (5 billion shares
of $.01 par value Common Stock authorized)............................ 149,960,427
============
Government Securities Series
Equivalent to a net asset value per share of $1.00 (10 billion shares
of $.01 par value Common Stock authorized)............................ 469,162,156
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
_______ ________
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $4,994,381 $13,672,958
_______ _________
EXPENSES-Note 2(c):
Management fee-Note 3(a).............................................. $ 398,618 $ 1,145,180
Shareholder servicing costs-Note 3(b)................................. 201,025 540,940
Custodian fees........................................................ 30,006 71,468
Registration fees..................................................... 18,032 21,328
Professional fees..................................................... . 13,669 39,604
Directors' fees and expenses-Note 3(c)................................ 8,370 23,518
Prospectus and shareholders' reports.................................. 6,138 10,255
Miscellaneous......................................................... 21,679 649
_______ _______
TOTAL EXPENSES.................................................... 697,537 1,852,942
_______ _______
INVESTMENT INCOME-NET....................................................... 4,296,844 11,820,016
NET REALIZED GAIN ON INVESTMENTS-Note 2(b).................................. 85,803 12,435
_______ _______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,382,647 $11,832,451
========= ===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET SERIES GOVERNMENT SECURITIES SERIES
_____________________ __________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED) 1994 (UNAUDITED)
_________ __________ _________ ___________
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net........... $ 6,015,399 $ 4,296,844 $ 15,841,682 $ 11,820,016
Net realized gain on investments 1,315 85,803 13,961 12,435
________ ____________ __________ ____________
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. 6,016,714 4,382,647 15,855,643 11,832,451
_________ __________ _________ ___________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net........... (6,015,399) (4,296,844) (15,841,682) (11,820,016)
_________ __________ _________ ___________
CAPITAL STOCK TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold... 363,712,784 154,536,085 1,082,467,060 581,245,588
Dividends reinvested............ 4,481,890 3,207,922 12,253,115 8,427,629
Cost of shares redeemed......... (405,184,351) (178,401,920) (1,149,487,078) (586,466,785)
_________ __________ ____________ _____________
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL
STOCK TRANSACTIONS........ (36,989,677) (20,657,913) (54,766,903) 3,206,432
__________ __________ ___________ ___________
TOTAL INCREASE (DECREASE)
IN NET ASSETS........... (36,988,362) (20,572,110) (54,752,942) 3,218,867
NET ASSETS:
Beginning of period............. 207,536,634 170,548,272 520,708,486 465,955,544
___________ ___________ ___________ ___________
End of period................... $ 170,548,272 $ 149,976,162 $ 465,955,544 $ 469,174,411
=============== ================ ================ ================
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS MONEY MARKET INSTRUMENTS, INC., Money Market Series
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
_______________________________________________
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
____ ____ ____ ____ _____ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ .9993 $ .9992 $ .9992 $ .9993 $ .9997 $ .9996
____ ____ ____ ____ _____ ______
INVESTMENT OPERATIONS:
Investment income-net............... .0761 .0580 .0346 .0261 .0337 .0267
Net realized gain (loss) on investments (.0001) - .0001 .0004 (.0001) .0005
____ ____ ____ ____ _____ ______
TOTAL FROM INVESTMENT OPERATIONS.. .0760 .0580 .0347 .0265 .0336 .0272
____ ____ ____ ____ _____ ______
DISTRIBUTIONS:
Dividends from investment income-net (.0761) (.0580) (.0346) (.0261) (.0337) (.0267)
Dividends from net realized gain
on investments.................... - - - - - -
____ ____ ____ ____ _____ ______
TOTAL DISTRIBUTIONS............... (.0761) (.0580) (.0346) (.0261) (.0337) (.0267)
____ ____ ____ ____ _____ ______
Net asset value, end of period...... $ .9992 $ .9992 $ .9993 $ .9997 $ .9996 $1.0001
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................. 7.88% 5.95% 3.51% 2.64% 3.42% 5.44%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .74% .72% .75% .83% .88% .87%*
Ratio of net investment income to
average net assets................ 7.62% 5.83% 3.48% 2.62% 3.35% 5.39%*
Net Assets, end of period (000's Omitted) $334,432 $282,356 $242,326 $207,537 $170,548 $149,976
_________________
* Annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS MONEY MARKET INSTRUMENTS, INC., Government Securities Series
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
______________________________________________
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
____ ____ ____ ____ _____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ .9999 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
____ ____ ____ ____ _____ ______
INVESTMENT OPERATIONS:
Investment income-net............... .0735 .0551 .0339 .0246 .0326 .0256
Net realized gain on investments.... .0001 - - - - -
____ ____ ____ ____ _____ ______
TOTAL FROM INVESTMENT OPERATIONS.. .0736 .0551 .0339 .0246 .0326 .0256
____ ____ ____ ____ _____ ______
DISTRIBUTIONS:
Dividends from investment income-net (.0735) (.0551) (.0339) (.0246) (.0326) (.0256)
Dividends from net realized gain
on investments.................... - - - - - -
____ ____ ____ ____ _____ ______
TOTAL DISTRIBUTIONS............... (.0735) (.0551) (.0339) (.0246) (.0326) (.0256)
____ ____ ____ ____ _____ ______
Net asset value, end of period...... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................. 7.61% 5.65% 3.45% 2.48% 3.31% 5.22%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .70% .69% .72% .80% .88% .81%*
Ratio of net investment income to
average net assets................ 7.35% 5.51% 3.39% 2.46% 3.24% 5.16%*
Net Assets, end of period (000's Omitted) $724,202 $706,544 $657,561 $520,708 $465,956 $469,174
________________
* Annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company and operates as a
series company issuing two classes of Common Stock: the Money Market Series
and the Government Securities Series. The Fund accounts separately for the
assets, liabilities and operations of each series. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is the Boston Institutional
Group, Inc. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00 for each series; the Fund has adopted certain investment,
portfolio valuation and dividend and distribution policies to enable it to do
so. There is no assurance, however, that the Fund will be able to maintain a
stable net asset value of $1.00.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodians and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(C) EXPENSES: Expenses directly attributable to each series are charged
to that series' operations; expenses which are applicable to both series are
allocated between them.
(D) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund, with respect
to both series, to declare dividends from investment income-net on each
business day; such dividends are paid monthly. Dividends from net realized
capital gain, with respect to both series, are normally declared and paid
annually, but each series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code.
However, to the extent that a net realized capital gain of either series can
be reduced by a capital loss carryover of that series, such gain will not be
distributed.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) FEDERAL INCOME TAXES: It is the policy of each series to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Money Market Series has an unused capital loss carryover of
approximately $87,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
December 31, 1994. If not applied, the carryover expires in 1995.
At June 30, 1995, the cost of investments of each series for Federal
income tax purposes was substantially the same as the cost for financial
reporting purposes (see the Statement of Investments).
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee for each series is computed at the annual rate of .50 of
1% of the average daily value of the net assets of each series and is payable
monthly.
The Agreement provides for an expense reimbursement from the Manager
should the aggregate expenses of either series, exclusive of taxes, interest
on borrowings, brokerage commissions and extraordinary expenses, exceed 1% of
the average daily value of such series' net assets for any full year. No
expense reimbursement was required pursuant to the Agreement for the six
months ended June 30, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the six months
ended June 30, 1995, the Money Market Series and the Government Securities
Series were charged an aggregate of $79,524 and $278,218, respectively,
pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MONEY MARKET INSTRUMENTS, INC.
We have reviewed the accompanying statement of assets and liabilities
including the statements of investments, of Dreyfus Money Market Instruments,
Inc. (comprising, respectively, the Money Market Series and the Government
Securities Series), as of June 30, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1995. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1994 and financial highlights for each of the five years in the
period ended December 31, 1994 and in our report dated February 7, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
July 31, 1995
[Dreyfus lion "d" logo]
DREYFUS MONEY MARKET
INSTRUMENTS, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 008/060SA956
[Dreyfus logo]
Money Market
Instruments, Inc.
Semi-Annual
Report
June 30, 1995
