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<PAGE> PAGE 2
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012 B000001 85-4110019
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014 A000002 PRUCO SECURITIES CORPORATION
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<PAGE> PAGE 3
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SIGNATURE GRACE TORRES
TITLE TREASURER
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<SERIES>
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<NAME> PRUDENTIAL NATIONAL MUNICIPALS FUND, INC. (CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 579,521,190
<INVESTMENTS-AT-VALUE> 630,728,008
<RECEIVABLES> 11,152,818
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<OTHER-ITEMS-ASSETS> 0
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</TABLE>
February 13, 1998
To the Shareholders and Board of Directors of
Prudential National Municipals Fund, Inc.
In planning and performing our audit of the
financial statements of Prudential National
Municipals Fund, Inc. (the "Fund") for the year
ended December 31, 1997, we considered its
internal control, including control activities
for safeguarding securities, in order to
determine our auditing procedures for the
purpose of expressing our opinion on the
financial statements and to comply with the
requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Fund is responsible for
establishing and maintaining internal control.
In fulfilling this responsibility, estimates
and judgments by management are required to
assess the expected benefits and related costs
of control activities. Generally, control
activities that are relevant to an audit
pertain to the entity's objective of preparing
financial statements for external purposes that
are fairly presented in conformity with
generally accepted accounting principles.
Those control activities include the
safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal
control, errors or irregularities may occur and
not be detected. Also, projection of any
evaluation of internal control to future
periods is subject to the risk that it may
become inadequate because of changes in
conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of internal control would not
necessarily disclose all matters in internal
control that might be material weaknesses under
standards established by the American Institute
of Certified Public Accountants. A material
weakness is a condition in which the design or
operation of any specific internal control
component does not reduce to a relatively low
level the risk that errors or irregularities in
amounts that would be material in relation to
the financial statements being audited may
occur and not be detected within a timely
period by employees in the normal course of
performing their assigned functions. However,
we noted no matters involving internal control,
including control activities for safeguarding
securities, that we consider to be material
weaknesses as defined above as of December 31,
1997.
This report is intended solely for the
information and use of management and the Board
of Directors of the Fund and the Securities and
Exchange Commission.
PRICE WATERHOUSE LLP
For the fiscal year ended (a) 12/31/97
File number (c) 811-2992
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
New York City
2. Date of Purchase
1/17/97
3. Number of Securities Purchased
35,000
4. Dollar Amount of Purchase
$3,399,480
5. Price Per Unit
$97.128
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Goldman Sachs & Company
7. Other Members of the Underwriting
Syndicate
Merrill Lynch & Co.
Bear, Stearns & Co. Inc.
Smith Barney
Artemis Capital Group
Goldman, Sachs, & Co.
Prudential Securities Inc.
First Albany Corp.
Pryor, McClendon, Counts & Co., Inc.
JP Morgan & Co.
Morgan Stanley & Co. Incorporated
Cambridge Partners LLC
Samuel A. Ramiriz & Co.
PaineWebber Inc.
Lehman Brothers
Citicorp Securities
William E. Simon & Sons
Grigsby Brandford & Co. Inc.
Aubrey G. Langston & Co. Inc.
Advest, Inc.
A.G. Edwards & Sons, Inc.
M.R. Beal & Company
Lebenthal & Co. Inc.
Oppenheimer & Co., Inc.
Roosevelt & Cross Incorporated
Muriel Siebert & Co., Inc.
For the fiscal year ended (a) 12/31/97
File number (c) 811-2992
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
New York City
2. Date of Purchase
4/11/97
3. Number of Securities Purchased
50,000
4. Dollar Amount of Purchase
$4,906,950
5. Price Per Unit
$98.139
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Smith Barney
7. Other Members of the Underwriting
Syndicate
Merrill Lynch & Co.
Bear, Stearns & Co. Inc.
Smith Barney
Artemis Capital Group
Goldman, Sachs, & Co.
Prudential Securities Inc.
First Albany Corp.
Pryor, McClendon, Counts & Co., Inc.
JP Morgan & Co.
Morgan Stanley & Co. Incorporated
Cambridge Partners LLC
Samuel A. Ramiriz & Co.
PaineWebber Inc.
Lehman Brothers
William E. Simon & Sons
Advest, Inc.
A.G. Edwards & Sons, Inc.
M.R. Beal & Company
Lebenthal & Co. Inc.
Oppenheimer & Co., Inc.
Roosevelt & Cross Incorporated
Siebert, Brandford, Shank & Co.
For the fiscal year ended (a) 12/31/97
File number (c) 811-2992
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Oregon
2. Date of Purchase
4/10/97
3. Number of Securities Purchased
15,000
4. Dollar Amount of Purchase
$1,500,000
5. Price Per Unit
$100.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Bear Stearns
7. Other Members of the Underwriting
Syndicate
Merrill Lynch & Co.
Bear, Stearns & Co. Inc.
Smith Barney
Prudential Securities Inc.
PaineWebber Inc.
M.R. Beal & Company
For the fiscal year ended (a) 12/31/97
File number (c) 811-2992
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Los Angeles Unified School District
2. Date of Purchase
7/16/97
3. Number of Securities Purchased
10,000
4. Dollar Amount of Purchase
$1,092,550
5. Price Per Unit
$109.255
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
BancAmerica Securities, Inc.
7. Other Members of the Underwriting
Syndicate
BancAmerica Securities
Merrill Lynch & Co.
Siebert, Brandford Shank &co., LLC.
M.R. Beal & Company
Redwood Securities Group, Inc.
Samuel A. Ramirez
For the fiscal year ended (a) 12/31/97
File number (c) 811-2992
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Massachusetts Bay Transportation
Authority
2. Date of Purchase
7/30/97
3. Number of Securities Purchased
50,000
4. Dollar Amount of Purchase
$4,736,350
5. Price Per Unit
$94.77
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Bear Stearns & Co. Inc.
7. Other Members of the Underwriting
Syndicate
Merrill Lynch & Co.
Bear, Stearns & Co. Inc.
Smith Barney
Goldman, Sachs, & Co.
Prudential Securities Inc.
PaineWebber Inc.
Lehman Brothers
M.R. Beal & Company
Bank Boston, N.A.
Cowen & Company
Fleet Securities, Inc.
State Street Bank and Trust Company
Tucker Anthony Incorporated
