DREYFUS MONEY MARKET INSTRUMENTS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Money Market
Instruments, Inc. for the six-month period ended June 30, 1997 as shown
below:
<TABLE>
<CAPTION>
ANNUALIZED
ANNUALIZED YIELD EFFECTIVE YIELD*
___________________ ___________________
<S> <C> <C>
Money Market Series.................... 4.61% 4.71%
Government Securities Series........... 4.52% 4.61%
</TABLE>
ECONOMIC REVIEW
Since ending its 1995 mid-cycle slowdown, the economy has sustained an
above-trend growth trajectory, slowing only briefly in
the third quarter of 1996 and again in recent months. Meanwhile, the level of
economic activity is now at the point where economic resources are near full
deployment. Yet price inflation remains quiescent, boosting the purchasing
power of incomes and contributing to the best sense of economic well-being in
decades. In this environment, economic policy has been benign, allowing market
interest rates to sway within an eighteen-month trading range and corporate
profits to rise steadily. However, even while the jury is out on the
inflation risks ahead, the Federal Reserve Board (the "Fed") has again
indicated a one-way bias towards tighter future policy.
Real Gross Domestic Product grew an above-trend 3.1% from year-end 1995
to year-end 1996, then accelerated to more than 4.0% in the first half of
this year. However, this year's pattern shows growth concentrated into the
first quarter, when GDP surged 5.9%, while a slowdown to near 2.5% is
apparent in the second quarter. The slower near-term growth is attributable
to a lackluster retail sector, even though exports and capital spending are
gaining. A key issue is whether the absence of pent-up demand could lead to a
sluggish consumer profile and, hence, a slow GDP growth from here on. Indeed,
factors that could underpin a resumption of stronger spending are rising:
real consumer purchasing power, soaring household wealth and all-time highs
in consumer confidence. Additionally, inventories remain lean, muting the
prospect of yet slower economic growth.
Alongside evidence of a slower retail sector in the second quarter are
reports showing that unemployment fell below 5% and industrial capacity
utilization tightened towards its 1994 highs. With these developments, the
economy now is operating at a high level with little slack. Yet wage
inflation abated in the second quarter while price inflation continued to
decelerate. The absence of any troublesome sign of inflation has kept market
interest rates in a long-standing trading range. Even corporate profits
continue to surprise on the upside.
Views on the need to tighten monetary policy are divergent. There are
those who believe that inflation pressure points are just different than in
the past and others who believe the inflation cycle has been eliminated by
global factors and technology. However, by leaning towards tighter future
policy, the Fed is at least willing to err on the cautious side in the next
several months.
THE MONEY MARKET
The money market began the current calendar year in a reasonably steady
mode with fluctuations within a narrow band. As the year advanced, however,
the market became increasingly concerned that the Fed would raise interest
rates. Late in December, 1996, Fed Chairman Alan Greenspan made his highly
publicized remark about "irrational exuberance" in the equity markets. Early
in 1997, other central bank officials spoke on the same theme. So it was no
great surprise to the markets when the Fed, in late March, actually raised
the short-term interbank rate by one quarter of a point. This was done as a
moderate dose of preventive medicine against possible future inflation.
By late spring and early summer, however, signs of a slowdown in the
economy caused interest rates to simmer down. To be sure, there was the usual
nervousness before each subsequent scheduled meeting of the rate-setting
Federal Open Market Committee. Yet the general trend of rates most recently
has been to fluctuate moderately while working down to somewhat lower levels.
PORTFOLIO STRATEGY
In this environment, we have maintained average maturities generally in
line with the averages for the money market fund industry to attempt to
assure our investors competitive yields. To date, this has been a successful
strategy.
You may be assured that we will, as always, adapt portfolio strategy to
the prevailing market conditions in order to bring you satisfactory yields on
your cash reserves.
Once again, we would like to express our appreciation for your confidence
in Dreyfus Money Market Instruments, Inc.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
July 17, 1997
New York, N.Y.
*Annualized effective yield takes into account the effect of compounding and
is based upon dividends declared daily and reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
STATEMENT OF INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Principal
Negotiable Bank Certificates of Deposit_25.1% Amount Value
__________ __________
<S> <C> <C> <C>
ABN-AMRO Bank N.V. (Yankee)
5.56%, 12/23/97........................................................... $ 6,000,000 $ 6,000,976
Bank of Tokyo-Mitsubishi (Yankee)
6%, 10/3/97............................................................... 6,000,000 6,000,000
Fuji Bank Ltd. (Yankee)
5.73%-5.87%, 7/2/97-10/1/97............................................... 6,000,000 6,000,000
Sanwa Bank Ltd. (London)
5.86%, 12/18/97........................................................... 6,000,000 6,000,275
Sumitomo Bank Ltd. (Yankee)
5.76%, 9/2/97............................................................. 4,000,000 4,000,000
SwedBank (Yankee)
5.63%, 7/28/97............................................................ 6,000,000 6,000,000
_____________
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $34,001,251)........................................................ $ 34,001,251
==============
Bankers' Acceptance_2.2%
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.89%, 10/28/97
(cost $2,943,078)......................................................... $ 3,000,000 $ 2,943,078
==============
Commercial Paper_27.9%
Chrysler Financial Corp.
5.62%, 7/24/97............................................................ $ 6,000,000 $ 5,978,572
Den Danske Corp.
5.77%, 8/20/97............................................................ 4,000,000 3,968,722
General Motors Acceptance Corp.
5.47%, 8/13/97............................................................ 5,000,000 4,968,228
Lehman Brothers Holdings Inc.
5.81%, 9/8/97............................................................. 6,000,000 5,934,105
Salomon Inc.
5.78%-5.86%, 8/4/97-9/18/97............................................... 6,000,000 5,960,777
Sanwa Business Credit Corp.
5.75%, 7/31/97............................................................ 6,000,000 5,971,400
UBS Finance (DE) Inc.
6.05%, 7/1/97............................................................. 5,000,000 5,000,000
_____________
TOTAL COMMERCIAL PAPER
(cost $37,781,804)........................................................ $ 37,781,804
==============
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Corporate Notes_10.0% Amount Value
__________ __________
Bear Stearns Companies Inc.
5.68%, 12/8/97 (a)........................................................ $ 2,500,000 $ 2,502,166
PNC Bank N.A.
5.43%, 2/18/98 (a)........................................................ 5,000,000 4,998,156
PHH Corp.
5.68%, 6/24/98............................................................ 6,000,000 6,000,000
_____________
TOTAL CORPORATE NOTES
(cost $13,500,322)........................................................ $ 13,500,322
=============
Promissary Notes_4.4%
Goldman Sachs Group L.P.
5.81%, 7/7/97
(cost $6,000,000)......................................................... $ 6,000,000 $ 6,000,000
=============
Short-Term Bank Notes_4.4%
Abbey National PLC
5.60%, 11/21/97
(cost $5,996,116).................................................... $ 6,000,000 $ 5,996,116
=============
U.S. Government Agencies_14.7%
Federal Farm Credit Bank
Floating Rate Notes
5.58%-5.67%, 7/25/97-10/23/98 (a)......................................... $ 15,000,000 $ 14,996,168
Federal National Mortgage Association
Floating Rate Notes
5.61%, 11/21/97 (a)....................................................... 5,000,000 4,999,052
_____________
TOTAL U.S. GOVERNMENT AGENCIES
(cost $19,995,220)........................................................ $ 19,995,220
=============
Time Deposits_7.8%
Berliner Handels-und Frankforter Bank (Grand Cayman)
6.24%, 7/1/97............................................................. $ 5,606,000 $ 5,606,000
First Union National Bank (Nassau)
6%, 7/1/97................................................................ 5,000,000 5,000,000
_____________
TOTAL TIME DEPOSITS
(cost $10,606,000)........................................................ $ 10,606,000
=============
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Repurchase Agreements_7.4% Amount Value
__________ __________
SBC Capital Corp.
5.94%, dated 6/30/97, due 7/1/97 in the amount of
$10,001,650 (fully collateralized by a $10,200,000
U.S. Treasury Note 5.375%, due 5/31/98, value
$10,204,999)
(cost $10,000,000).............................................. $ 10,000,000 $ 10,000,000
=============
TOTAL INVESTMENTS (cost $140,823,791)............................. 103.9% $140,823,791
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES........................... (3.9%) $ (5,340,354)
======= =============
NET ASSETS........................................................ 100.0% $135,483,437
======= =============
Notes to Statement of Investments:
(a) Variable interest rates are subject to change periodically.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
STATEMENT OF INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Annualized
Yield on
Date of Principal
U.S. Treasury Bills_35.0% Purchase Amount Value
_________ _____________ __________
7/24/97.................................................... 5.59% $ 20,000,000 $ 19,932,278
8/21/97.................................................... 5.17 135,000,000 134,023,669
_____________
TOTAL U.S. TREASURY BILLS
(cost $153,955,947)........................................ $153,955,947
==============
U.S. Treasury Notes_21.2%
5.875%, 7/31/97............................................ 5.20% $ 25,000,000 $ 25,008,671
7.875%, 1/15/98............................................ 5.52 42,000,000 42,500,689
8.25%, 7/15/98............................................. 5.40 25,000,000 25,616,235
_____________
TOTAL U.S. TREASURY NOTES
(cost $93,125,595)......................................... $ 93,125,595
==============
Repurchase Agreements_43.5%
Barclays De Zoette Wedd Securities, Inc.
dated 6/30/97, due 7/1/97 in the amount of $2,750,413
(fully collateralized by $2,718,000 U.S. Treasury
Notes, 8.75%, due 10/15/97, value $2,791,167).............. 5.40% $ 2,750,000 $ 2,750,000
Bear, Stearns & Co. Inc
dated 6/30/97, due 7/1/97 in the amount of $50,007,986
(fully collateralized by $52,518,000 U.S. Treasury
Bills, due from 6/25/97 to 10/09/97, value $51,004,759).... 5.75 50,000,000 50,000,000
CIBC Woody Gundy Security Corp.
dated 6/30/97, due 7/1/97 in the amount of $50,008,264
(fully collateralized by $50,681,000 U.S. Treasury
Notes, 5.25%, due 12/31/97, value $50,593,323)............. 5.95 50,000,000 50,000,000
Lanston (Aubrey G.) & Co., Inc.
dated 6/30/97, due 7/1/97 in the amount of $40,006,555
(fully collateralized by $40,060,600 U.S. Treasury
Notes, 6.125%, due 05/15/98, value $40,466,859)............ 5.90 40,000,000 40,000,000
Nikko Securities Co. International, Inc.
dated 6/30/97, due 7/1/97 in the amount of $43,007,107
(fully collateralized by $43,251,000 U.S. Treasury
Notes, 6%, due 11/30/97, value $43,523,669)................ 5.95 43,000,000 43,000,000
SBC Capital Markets
dated 6/30/97, due 7/1/97 in the amount of $5,000,764
(fully collateralized by $5,019,000 U.S. Treasury
Notes, 5%, due 1/31/98, value $5,101,027).................. 5.50 5,000,000 5,000,000
_____________
TOTAL REPURCHASE AGREEMENTS
(cost $190,750,000)........................................ $190,750,000
==============
TOTAL INVESTMENTS (cost $437,831,542).............. 99.7% $437,831,542
===== ==============
CASH AND RECEIVABLES (NET)......................... .3% $ 1,479,069
===== ==============
NET ASSETS......................................... 100.0% $439,310,611
====== ==============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED)
Money Government
Market Securities
Series Series
____________ ____________
ASSETS: Investments in securities, at value (including repurchase
agreements of $10,000,000 for the Money Market Series
and $190,750,000 for the Government Securities Series)
_Note 2(b) $140,823,791 $437,831,542
Cash....................................... 870,456 3,870,850
Interest receivable........................ 856,966 3,106,002
Prepaid expenses........................... 36,018 38,967
____________ ____________
142,587,231 444,847,361
____________ ____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 77,889 304,440
Payable for investment securities purchased 7,000,000 ____
Payable for shares of Common Stock redeemed ____ 5,078,999
Accrued expenses and other liabilities..... 25,905 153,311
____________ ____________
7,103,794 5,536,750
____________ ____________
NET ASSETS.................................................................. $135,483,437 $439,310,611
============= =============
REPRESENTED BY: Paid-in capital............................ $135,505,684 $439,309,562
Accumulated net realized gain (loss) on investments (22,247) 1,049
____________ ____________
NET ASSETS.................................................................. $135,483,437 $439,310,611
============= =============
NET ASSET VALUE PER SHARE
_________________________
Money Government
Market Securities
Series Series
____________ ________________
Net Assets.................................................................. $135,483,437 $439,310,611
Shares Outstanding.......................................................... 135,489,185 439,309,562
NET ASSET VALUE PER SHARE................................................... $1.00 $1.00
___ ___
___ ___
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
Money Government
Market Securities
Series Series
_______________ ________________
INVESTMENT INCOME
INCOME Interest Income................................ $ 3,594,645 $11,877,652
_______________ ________________
EXPENSES_Note 2(c): Management fee_Note 3(a)....................... $ 319,831 $ 1,097,645
Shareholder servicing costs _Note 3(b)......... 259,011 652,033
Custodian fees................................. 19,119 57,730
Registration fees.............................. 18,101 18,115
Directors' fees and expenses_Note 3(c)......... 8,806 29,378
Prospectus and shareholders' reports........... 5,868 10,703
Professional fees.............................. 5,828 31,045
Miscellaneous.................................. 5,420 57,159
_______________ ________________
Total Expenses 641,984 1,953,808
_______________ ________________
INVESTMENT INCOME_NET....................................................... 2,952,661 9,923,844
NET REALIZED AND GAIN (LOSS) ON INVESTMENTS_Note 2(b)....................... (3,867) 8,305
_______________ ________________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 2,948,794 $ 9,932,149
=============== =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Money Market Series Government Securities Series
_________________________________ __________________________________
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1997 December 31, June 30, 1997 December 31,
(Unaudited) 1996 (Unaudited) 1996
________________ ______________ _______________ ____________
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income_net.................... $ 2,952,661 $ 6,377,549 $ 9,923,844 $ 19,732,585
Net realized gain (loss) on investments.. (3,867) (18,380) 8,305 (7,256)
______________ ______________ ______________ _____________
Net Increase (Decrease) in
Net Assets Resulting from Operations. 2,948,794 6,359,169 9,932,149 19,725,329
______________ ______________ ______________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net.................... (2,952,661) (6,377,549) (9,923,844) (19,732,585)
Net realized gain on investments......... ___ (1,686) ___ (6,324)
______________ ______________ ______________ _____________
Total Dividends........................ (2,952,661) (6,379,235) (9,923,844) (19,738,909)
______________ ______________ ______________ _____________
CAPITAL STOCK TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold............ 154,196,124 315,705,868 879,700,640 1,516,154,559
Dividends reinvested..................... 2,152,185 4,720,481 6,406,974 13,459,323
Cost of shares redeemed.................. (150,205,026) (335,234,637) (888,573,839) (1,519,275,272)
______________ ______________ ______________ _____________
Increase (Decrease) in Net Assets from
Capital Stock Transactions........... 6,143,283 (14,808,288) (2,466,225) 10,338,610
______________ ______________ ______________ _____________
Total Increase (Decrease) in Net Assets 6,139,416 (14,828,354) (2,457,920) 10,325,030
NET ASSETS:
Beginning of Period................ 129,344,021 144,172,375 441,768,531 431,443,501
______________ ______________ ______________ _____________
End of Period...................... $ 135,483,437 $ 129,344,021 $ 439,310,611 $ 441,768,531
=============== ================ =============== ================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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
June 30, 1997 Year Ended December 31,
__________________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
_______________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income_net................. .023 .046 .053 .034 .026 .035
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income_net.. (.023) (.046) (.053) (.034) (.026) (.035)
_______ _______ _______ _______ _______ _______
Net asset value, end of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN............... 4.66%* 4.73% 5.46% 3.42% 2.64% 3.51%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.00%* .93% .84% .88% .83% .75%
Ratio of net investment income
to average net assets............. 4.62%* 4.63% 5.33% 3.35% 2.62% 3.48%
Net Assets, end of period (000's Omitted) $135,483 $129,344 $144,172 $170,548 $207,537 $242,326
* Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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
June 30, 1997 Year Ended December 31,
__________________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
_______________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income_net................. .022 .045 .051 .033 .025 .034
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income-net.. (.022) (.045) (.051) (.033) (.025) (.034)
_______ _______ _______ _______ _______ _______
Net asset value, end of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======== ======= ======== ========= ========
TOTAL INVESTMENT RETURN................ 4.56%* 4.60% 5.18% 3.31% 2.48% 3.45%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .89%* .90% .83% .88% .80% .72%
Ratio of net investment income
to average net assets............... 4.52%* 4.50% 5.07% 3.24% 2.46% 3.39%
Net Assets, end of period
(000's Omitted) $439,311 $441,769 $431,444 $465,956 $520,708 $657,561
* Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_GENERAL:
Dreyfus Money Market Instruments, Inc. (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. The Fund's investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. is the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Fund is
authorized to issue 5 billion shares of $.01 par value Common Stock for the
Money Market Series and 10 billion shares of $.01 par value Common Stock for
the Government Securities Series.
It is the Series' 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 per share of $1.00.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
NOTE 2_SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments in securities 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 distributi
ons 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 $18,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
December 31, 1996. If not applied, the carryover expires in 2004.
The Government Securities Series has an unused capital loss carryover of
approximately $11,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
December 31, 1996. If not applied, the carryover expires in 2004.
At June 30, 1997, 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 value of the average daily net assets of each series and is payable
monthly.
The Agreement provides that if in any full fiscal year the aggregate
expenses of either series, exclusive of taxes, brokerage commissions,
interest on borrowings and extraordinary expenses, exceed 1% of the value of
such series' average daily net assets, the Fund may deduct from payments to
be made to the Manager, or the Manager will bear the amount of such excess.
No expense reimbursement was required pursuant to the Agreement for the
period ended June 30, 1997.
(B) Under the Shareholder Services Plan, each series reimburses Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, an amount not
to exceed an annual rate of .25 of 1% of each series' average daily net
assets for certain allocated expenses of providing personal services and/or
maintaining 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
period ended June 30, 1997, the Money Market Series and the Government
Securities Series were charged an aggregate of $220,058 and $483,210,
respectively, pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. With respect to
the Money Market Series and the Government Securities Series, such
compensation amounted to $53,785 and $117,552, respectively, during the
period ended June 30, 1997.
(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 lion "d" logo]
Registration Mark
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
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 008/060SA976
[Dreyfus logo]
Registration Mark
Money Market
Instruments, Inc.
Semi-Annual
Report
June 30, 1997
