LETTER TO SHAREHOLDERS
Dear Shareholder:
Continued expansion of the U.S. economy, and actions by the Federal
Reserve Board to contain any inflationary effects, have resulted in a rise in
interest rates in recent months.
Accordingly, for the latest semi-annual fiscal period ended July 31,
1994, the annualized yield of the General Money Market Fund, Inc. reached
3.00%. After taking into account the effect of compounding, the annualized
effective yield was 3.04%.*
In our view, some time may be needed for the market to adjust to the new
level of interest rates. As a result, in managing the portfolio of the
General Money Market Fund, we have shortened maturities considerably, placing
the portfolio in a more defensive position.
An impressive number of factors have converged to exert upward pressure
on interest rates. First and foremost is the strength exhibited by the
American economy. Many indicators attest to this: rising industrial
production, an increase in the number of jobs, increases in prices to
manufacturers and the appearance of shortages of skilled labor and certain
materials in a few areas.
The Federal Reserve Board reacted to these and other indicators with a
series of five credit-tightening steps that began last February. The latest
occurred in mid-August.
Overseas, the foreign exchange rate for the U.S. dollar has been marked
down, which could be taken by the Fed as another reason to increase interest
rates.
Meanwhile, the economies of Europe and Japan appear to be recovering from
recession. As demand from these areas for U.S. goods expands, this would be
an added factor tending to increase price and wage levels in the U.S.
In view of all these factors, we consider it prudent to maintain the Fund
in a defensive position. We always have the option of lengthening maturities
once again when we are convinced that yield levels have stabilized.
Needless to say, in view of the volatility of the fixed-income market, we
are placing more stress than ever on checking the quality of issues acquired
for the portfolio.
It is a privilege to serve your investment needs and we thank you, once
again, for the business you have directed to this Fund.
Sincerely,
(Joseph S. DiMartino Signature Logo)
For The Dreyfus Corporation
Joseph S. DiMartino
President
August 23, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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<CAPTION>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS JULY 31, 1994 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--23.5% AMOUNT VALUE
------------ -------------
<S> <C> <C>
Chase Manhattan Bank N.A. (London)
5.06%, 12/28/94......................................................... $ 15,000,000 $ 15,000,000
Dai-Ichi Kangyo Bank Ltd. (London)
4.53%, 8/31/94.......................................................... 19,000,000 19,002,541
Industrial Bank of Japan Ltd. (London)
4.57%, 9/2/94........................................................... 7,000,000 7,000,000
Industrial Bank of Japan Ltd. (Yankee)
3.45%, 10/11/94-10/12/94................................................ 20,000,000 20,000,000
Mitsubishi Bank Ltd. (London)
4.80%-4.81%, 10/3/94-12/14/94........................................... 25,000,000 25,006,801
Norinchukin Bank (London)
4.50%-4.80%, 8/31/94-12/13/94........................................... 23,000,000 23,001,569
Sumitomo Bank Ltd. (Yankee)
4.81%, 12/15/94......................................................... 8,000,000 8,000,000
SwedBank (Yankee)
4.07%, 8/29/94.......................................................... 20,000,000 20,000,000
-------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT (cost $137,010,911)........... $137,010,911
=============
BANKERS' ACCEPTANCES--5.3%
Bank of Tokyo Ltd. (Yankee)
4.82%-5.21%, 10/4/94-1/17/95............................................ $ 14,700,000 $ 14,426,366
Dai-Ichi Kangyo Bank Ltd. (Yankee)
4.83%, 11/15/94......................................................... 7,000,000 6,902,509
Sanwa Bank Ltd. (Yankee)
4.83%, 11/28/94......................................................... 10,000,000 9,843,978
-------------
TOTAL BANKERS' ACCEPTANCES (cost $31,172,853)............................... $ 31,172,853
=============
COMMERCIAL PAPER-38.3%
AES Shady Point Inc.
4.55%, 8/1/94(a)........................................................ $ 10,000,000 $ 10,000,000
Bankers Trust New York Corp.
3.52%-3.59%, 10/3/94-10/7/94............................................ 30,000,000 29,813,664
Credito Italiano (Delaware) Inc.
4.57%, 8/23/94.......................................................... 7,500,000 7,479,146
Den Danske Corp. Inc.
3.54%-4.57%, 8/23/94-10/4/94............................................ 25,000,000 24,880,194
Ford Motor Credit Co.
4.88%, 11/16/94......................................................... 10,000,000 9,857,333
General Electric Capital Corp.
4.84%-5.11%, 10/11/94-3/14/95........................................... 25,000,000 24,551,388
General Motors Acceptance Corp.
4.65%, 8/16/94.......................................................... 8,000,000 7,984,667
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
------------- -------------
Goldman Sachs Group L.P.
3.43%, 10/17/94......................................................... $ 10,000,000 $ 9,928,561
Lehman Brothers Holdings Inc.
4.53%-4.79%, 9/12/94-10/19/94........................................... 18,000,000 17,864,695
MPS U.S. Commercial Paper Corp.
4.84%, 12/15/94......................................................... 10,000,000 9,821,689
Nordbanken N.A. Inc.
4.07%, 8/5/94........................................................... 20,000,000 19,991,067
PaineWebber Group Inc.
4.11%, 8/8/94........................................................... 7,000,000 6,994,488
Seventy Five State Street
4.46%-4.60%, 8/8/94-8/22/94 (a)......................................... 28,632,000 28,581,010
SwedBank Inc.
3.50%, 8/3/94........................................................... 5,000,000 4,999,044
Tonen Energy International Corp.
4.85%, 9/15/94 (a)...................................................... 10,208,000 10,146,752
-------------
TOTAL COMMERCIAL PAPER (cost $222,893,698).................................. $222,893,698
=============
CORPORATE NOTES--14.9%
Bear Stearns Companies Inc.
4.65%-4.69%, 8/8/94-9/20/94 (b)......................................... $ 27,000,000 $ 27,000,000
General Motors Acceptance Corp.
4.48%, 9/30/94 (b)...................................................... 10,000,000 10,005,053
Lehman Brothers Holdings Inc.
4.90%, 1/13/95 (b)...................................................... 10,000,000 10,000,000
Merrill Lynch & Co. Inc.
4.48%-4.75%, 9/7/94-2/23/95 (b)......................................... 30,000,000 30,000,000
Westdeutsche Landesbank Girozentrale
3.75%, 1/11/95 (b)...................................................... 10,000,000 9,995,177
-------------
TOTAL CORPORATE NOTES (cost $87,000,230).................................... $ 87,000,230
=============
U.S. GOVERNMENT AGENCIES--11.1%
Federal Home Loan Banks, Floating Rate Notes
4.83%, 1/31/97 (b)...................................................... $ 15,000,000 $ 15,000,000
Federal National Mortgage Association, Discount Notes
3.54%, 10/20/94......................................................... 20,000,000 19,847,110
Federal National Mortgage Association, Floating Rate Notes
4.84%, 2/18/97 (b)...................................................... 30,000,000 30,000,000
-------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $64,847,110)........................... $ 64,847,110
=============
TIME DEPOSITS--6.5%
Chemical Bank (London)
4.25%, 8/1/94........................................................... $ 20,000,000 $ 20,000,000
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TIME DEPOSITS (CONTINUED) AMOUNT VALUE
------------- -------------
Republic National Bank of New York (London)
4.06%, 8/1/94........................................................... $ 3,352,000 $ 3,352,000
Society National Bank (Grand Cayman)
4.25%, 8/1/94........................................................... 14,332,000 14,332,000
-------------
TOTAL TIME DEPOSITS (cost $37,684,000)...................................... $ 37,684,000
=============
TOTAL INVESTMENTS (cost $580,608,802)............................... 99.6% $580,608,802
======= =============
CASH AND RECEIVABLES(NET)........................................... .4% $ 2,097,828
======= =============
NET ASSETS .................................................... 100.0% $582,706,630
======= =============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by an irrevocable letter of credit.
(b) Variable interest rate-subject to periodic change.
See independent accountants' review report and notes to financial statements.
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<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value--Note 1(a).......................... $580,608,802
Cash.................................................................... 424,543
Interest receivable..................................................... 2,468,220
Prepaid expenses........................................................ 141,930
-------------
................................................................ 583,643,495
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $233,589
Payable for Common Stock redeemed....................................... 333,183
Accrued expenses ....................................................... 370,093 936,865
-------- -------------
NET ASSETS ................................................................ $582,706,630
=============
REPRESENTED BY:
Paid-in capital......................................................... $582,717,148
Accumulated net realized (loss) on investments.......................... (10,518)
-------------
NET ASSETS at value applicable to 582,717,148 outstanding shares
of Common Stock, equivalent to $1.00 per share (15 billion shares
of $.01 par value authorized)........................................... $582,706,630
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $11,299,720
EXPENSES:
Management fee--Note 2(a)............................................. $1,435,371
Shareholder servicing costs-Note 2(b,c)............................... 1,219,855
Custodian fees........................................................ 51,395
Registration fees..................................................... 28,237
Professional fees..................................................... 24,675
Prospectus and shareholders' reports.................................. 19,545
Directors' fees and expenses-Note 2(d)................................ 13,912
Miscellaneous......................................................... 9,590
-----------
2,802,580
Less--reduction in shareholder servicing costs due
to undertaking-Note 2(c).......................................... 107,514
-----------
TOTAL EXPENSES.................................................. 2,695,066
-------------
INVESTMENT INCOME--NET...................................................... 8,604,654
NET REALIZED GAIN ON INVESTMENTS-Note 1(b).................................. 12,804
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 8,617,458
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
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GENERAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1994
1994 (UNAUDITED)
--------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 16,251,231 $ 8,604,654
Net realized gain on investments..................................... 8,097 12,804
--------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 16,259,328 8,617,458
--------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net............................................... (16,251,231) (8,604,654)
--------------- --------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 4,434,832,280 1,867,758,115
Dividends reinvested................................................. 15,136,179 8,448,479
Cost of shares redeemed.............................................. (4,522,690,497) (1,909,584,318)
--------------- --------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........... (72,722,038) (33,377,724)
--------------- --------------
TOTAL (DECREASE) IN NET ASSETS................................. (72,713,941) (33,364,920)
NET ASSETS:
Beginning of period.................................................. 688,785,491 616,071,550
--------------- --------------
End of period........................................................ $ 616,071,550 $ 582,706,630
=============== ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
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.
YEAR ENDED JANUARY 31, SIX MONTHS ENDED
--------------------------------------------------- JULY 31, 1994
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..................... .0846 .0739 .0547 .0321 .0253 .0149
Net realized gain (loss) on investments.... .0001 -- -- -- -- --
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS......... .0847 .0739 .0547 .0321 .0253 .0149
------- ------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income--net...... (.0846) (.0739) (.0547) (.0321) (.0253) (.0149)
------- ------- ------- ------- ------- -------
Net asset value, end of period............. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
TOTAL INVESTMENT RETURN ======= ======= ======= ======= ======= =======
8.80% 7.64% 5.61% 3.26% 2.56% 3.02%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .93% .91% .92% .95% .94% .94%*
Ratio of net investment income to average
net assets............................... 8.43% 7.39% 5.44% 3.22% 2.53% 3.00%*
Decrease reflected in above expense ratios
due to undertaking by the Manager........ -- -- -- -- .02% .04%*
Net Assets, end of period (000's Omitted) $915,548 $677,257 $845,690 $688,785 $616,072 $582,707
- --------------
* Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation acted as the distributor of the Fund's shares until August 24,
1994, which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services Inc. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
(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.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income--net on each business day; such dividends
are paid monthly. Dividends from net realized capital gain are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund 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 taxes.
The Fund has an unused capital loss carryover of approximately $23,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 1994. If not
applied, the carryover expires in 2002.
At July 31, 1994, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .50 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings, brokerage
commissions and extraordinary expenses, exceed 1 1/2% of the average value of
the Fund's net assets for any full fiscal year. There was no expense
reimbursement for the six months ended July 31, 1994.
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) The Fund has adopted a Service Plan, pursuant to which it has agreed
to reimburse either the Manager or Dreyfus Service Corporation for payments
made to a Service Agent (a securities dealer, financial institution, or other
industry professional), at an annual rate of .20 of 1% of the average daily
net asset value of Fund shares owned by clients of the Service Agent. The
rate and basis of such payments may be modified from time to time by the
Fund's Board of Directors. For the six months ended July 31, 1994, such
reimbursement amounted to $574,148.
(C) 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 July 31, 1994, $251,370 was charged to the Fund pursuant to the Plan,
of which $107,514 was reimbursed pursuant to an undertaking by the Manager.
(D) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or Dreyfus Service Corporation.
Each director who is not an "affiliated person" receives an annual fee of
$2,500 and an attendance fee of $500 per meeting.
GENERAL MONEY MARKET FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL MONEY MARKET FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
General Money Market Fund, Inc., including the statement of investments, as
of July 31, 1994, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended July 31, 1994.
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
January 31, 1994 and financial highlights for each of the five years in the
period ended January 31, 1994 and in our report dated March 4, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP)
New York, New York
September 2, 1994
GENERAL MONEY MARKET FUND, INC.
144 Glenn Curtiss Boulevard Uniondale, NY 11556
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. 196SA947
GENERAL
MONEY MARKET
FUND, INC.
SEMI-ANNUAL REPORT
July 31, 1994
