GENERAL MONEY MARKET FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for the General Money Market
Fund, Inc. for the six-month reporting period ended July 31, 1997, as shown
in the following chart:
<TABLE>
ANNUALIZED YIELD ANNUALIZED EFFECTIVE YIELD*
--------------- ------------------------
<S> <C> <C>
Class A Shares......................... 4.84% 4.95%
Class B Shares......................... 4.70% 4.81%
</TABLE>
Economic Review
For 18 months, the economy has maintained a growth pace exceeding the
long-term trends and marred only by a brief slowdown in mid-1996 and again
this spring. An early look at the summer months indicates that a brisker
growth pace has now resumed in many regions. So far, the strong economy has
failed to lift either wages or prices significantly. However, economic
resources are nearing full deployment, fueling the debate on how fast the
economy can grow without ultimately boosting inflation. The benign inflation
profile has fostered an equally benign policy environment: soaring tax
receipts have virtually balanced the Federal budget, and the Federal Reserve
Board (the "Fed") has left interest rate policy unchanged since March.
After rising 3.1% in the four quarters from year-end 1995 to year-end
1996, real Gross Domestic Product grew a further 3.5% in the first half of
1997. Indeed, demand from final users in the U.S. has expanded at a steady
3.5% annualized pace over these six quarters, and virtually all major
economic sectors are currently participating. This demand, helped by a strong
dollar, is now drawing in imports. While rapid import growth can help foreign
economic growth and thus indirectly boosts U.S. exports, it also raises the
prospect of a deteriorating trade balance.
The economy's growth rate is impressive, given the absence of reported
inflation, yet it is the level of economic activity which fosters the key
debate. The unemployment rate has recently held below 5% for several months,
and could drop further if present growth trends are sustained. Industrial
capacity utilization is likewise tightening. Views on the need for the Fed to
raise interest rates differ between those who believe that inflation pressure
points are merely lower than in the past and those who believe the forces of
the changed economic structure will be anti-inflationary on a sustained
basis.
Market forces will no doubt be the determining factors. The Fed will
surely be guided by how profits, interest rates and labor costs play out in
the economy. An overriding factor in the equation is the policy bias of the
central bank which, for more than a year, has clearly favored tightening of
credit when called for by the economic situation.
The Money Market
Two factors dominated the money market in the past six months - the
outlook for the economy and the course of interest rates. For most of the
period, both performance of the economy and future expectations were very
positive. Solid growth continued, with little inflation evident in either
prices or wages. However, the Federal Reserve Board Open Market Committee,
which sets interest rate targets, became concerned about inflationary
pressures, particularly as reflected in the securities markets. This led the
Fed to raise interest rates modestly in March.
Whether due to the Fed's preventive action or not, interest rates
simmered down in the ensuing four months, as the economy appeared headed for
a slowdown. Signs of potential excessive strength did not roil the market
until early August, when the money market once again began anticipating
higher interest rates.
Portfolio Strategy
To deal with the environment that prevailed until July 31, 1997, we
stayed with our current strategy of maintaining slightly longer average
maturities than the industry average for money market funds. The rationale
for this strategy is to seek better yields for our investors. So far, this
approach has been rewarding. We remain vigilant, however, for any signs of
underlying change in the economic and market environment. You may rest
assured that, as we go forward, portfolio strategy will be adapted to
prevailing market conditions in order to bring you competitive yields.
As your Fund enters the second half of its fiscal year, we would like to
take this opportunity to thank you for the confidence you have shown in the
Dreyfus organization.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
August 18, 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>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS
JULY 31, 1997 (UNAUDITED)
Principal
Negotiable Bank Certificates of Deposit-34.4% Amount Value
----------- ----------
<S> <C> <C>
Abbey National PLC (London)
5.60%, 10/15/97........................................................... $ 35,000,000 $ 35,000,719
ABN-AMRO Bank N.V. (Yankee)
5.59%, 12/23/97........................................................... 20,500,000 20,500,370
Banker Trust Co. (London)
5.61%, 11/20/97........................................................... 10,000,000 10,001,470
Bank of Tokyo-Mitsubishi, Ltd. (Yankee)
6.00%-6.01%, 10/3/97-3/16/98.............................................. 62,000,000 62,000,000
Berliner Handels-und Frankforter Bank (Yankee)
5.69%, 7/13/98 (a)........................................................ 50,000,000 49,993,118
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.80%-5.88%, 9/3/97-12/16/97.............................................. 28,000,000 28,001,889
Fuji Bank Ltd. (Yankee)
5.75-5.86%, 8/13/97-10/22/97.............................................. 80,000,000 80,000,000
Industrial Bank of Japan Ltd. (Yankee)
5.72%-5.87, 10/21/97-1/5/98............................................... 79,000,000 79,000,000
International Nederlanden Bank (London)
6.06%, 6/5/98............................................................. 43,000,000 43,011,385
Landesbank Hessen-Thueringen Girozentrale (Yankee)
6.25%, 4/7/98............................................................. 50,000,000 49,960,973
Sanwa Bank Ltd. (London)
5.86%, 12/18/97........................................................... 20,000,000 20,000,750
Societe Generale (Yankee)
5.57%-5.90%, 9/17/97-7/16/98.............................................. 64,000,000 63,998,944
Sumitomo Bank Ltd. (London)
5.74%, 10/10/97........................................................... 20,000,000 20,000,243
Sumitomo Bank Ltd. (Yankee)
5.72%-5.78%, 9/26/97-10/22/97............................................. 55,000,000 55,000,000
----------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $616,469,861)....................................................... $ 616,469,861
================
Commercial Paper-23.3%
Associates Corp. of North America
5.80%, 8/1/97............................................................. $ 30,000,000 $ 30,000,000
Bankers Trust New York Corp.
5.72%, 10/17/97 (a)....................................................... 25,000,000 25,000,000
General Motors Acceptance Corp.
5.55%-6.02%, 8/4/97-11/5/97............................................... 83,178,000 82,314,115
Merrill Lynch & Co. Inc.
5.50%, 10/14/97........................................................... 25,000,000 24,727,639
Paine Webber Group Inc.
5.60%, 8/25/97............................................................ 15,000,000 14,945,500
Salomon Inc.
5.78%-5.92%, 8/4/97-1/6/98................................................ 29,000,000 28,614,901
Santander Finance (DE) Inc.
5.64%, 1/30/98............................................................ 25,000,000 24,317,563
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
JULY 31, 1997 (UNAUDITED)
Principal
Commercial Paper (continued) Amount Value
--------- ----------
Sanwa Business Credit Corp.
5.65%-5.78%, 9/9/97-10/16/97.............................................. $ 75,000,000 $ 74,397,820
Lehman Brothers Holdings Inc.
5.57%-6.06%, 8/8/97-4/24/98............................................... 90,000,000 88,160,313
SwedBank Inc.
5.63%, 12/29/97........................................................... 25,000,000 24,427,083
---------
TOTAL COMMERCIAL PAPER
(cost $416,904,934)....................................................... $ 416,904,934
================
Bank Notes-9.5%
Banker Trust Co.
5.74%, 4/3/98 (a)......................................................... $ 50,000,000 $ 49,986,908
Bank of America Illinois
5.58%, 11/19/97........................................................... 25,000,000 24,996,385
Bank of America NT & SA
5.58%, 11/21/97........................................................... 25,000,000 24,995,583
Bayerische Landesbank Girozentrale
5.64%, 8/14/98............................................................ 25,000,000 25,063,648
Comerica Bank
5.71%, 4/17/98 (a)........................................................ 25,000,000 24,991,438
First National Bank of Boston
5.72%, 4/14/98 (a)........................................................ 20,000,000 20,000,000
-------------
TOTAL BANK NOTES
(cost $170,033,962)....................................................... $ 170,033,962
===============
Corporate Notes-20.1%
Abbey National PLC
5.63%, 11/26/97........................................................... $ 50,000,000 $ 49,978,986
Bear Stearns Companies Inc.
5.83%, 1/13/98............................................................ 25,000,000 25,000,000
Heller Financial Inc.
5.80%, 4/7/98 (a)......................................................... 50,000,000 50,000,000
Key Bank N.A. Cleveland
5.67%, 2/18/98 (a)........................................................ 30,000,000 29,992,012
Merrill Lynch & Co. Inc.
5.72%, 4/15/98 (a)........................................................ 25,000,000 25,000,000
Morgan Stanley Group Inc.
5.76%, 5/18/98 (a)........................................................ 15,000,000 15,000,000
Paine Webber Group Inc.
5.79%, 1/7/98 (a)......................................................... 20,000,000 20,000,000
PHH Corp.
5.66%-5.69%, 6/24/98-8/4/98 (a)........................................... 65,000,000 65,000,000
PNC Bank N.A.
5.68%-5.69%, 2/18/98-4/24/98 (a).......................................... 40,000,000 39,987,937
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
JULY 31, 1997 (UNAUDITED)
Principal
Corporate Notes (continued) Amount Value
Salomon Inc.
5.85%-5.89%, 11/10/97-7/20/98 (a)......................................... $ 40,000,000 $ 40,000,000
--------------
TOTAL CORPORATE NOTES
(cost $359,958,935)....................................................... $ 359,958,935
===========
Promissory Notes-4.8%
Goldman Sachs Group L.P.
5.85%-5.91%, 1/5/98-4/24/98 (b,c)
(cost $87,000,000)........................................................ $ 87,000,000 $ 87,000,000
============
U.S. Government Agencies-7.4%
Federal Home Loan Mortgage Corp. Floating Rate Notes
5.75%, 6/30/98 (a)........................................................ $ 10,700,000 $ 10,711,122
Federal Home Loan Mortgage Association, Floating Rate Notes
5.58%-5.63%, 8/18/97-5/14/98 (a).......................................... 122,000,000 122,081,838
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $132,792,960)....................................................... $ 132,792,960
==============
Time Deposits-3.9%
Bayerische Vereinsbank AG (Cayman)
5.81%, 8/1/97............................................................. $ 25,000,000 $ 25,000,000
Berliner Handels-und Frankforter Bank AG (Cayman)
5.88%, 8/1/97............................................................. 5,068,000 5,068,000
Deutsche Bank AG (Cayman)
5.81%, 8/1/97............................................................. 40,000,000 40,000,000
----------
TOTAL TIME DEPOSITS
(cost $70,068,000)........................................................ $ 70,068,000
===========
TOTAL INVESTMENTS
(cost $1,853,228,652).................................... 103.4% $1,853,228,652
====== ==============
LIABILITIES, LESS CASH AND RECEIVABLES...................... (3.4%) $ (61,110,910)
====== ================
NET ASSETS................................................. 100.0% $1,792,117,742
===== ================
Notes to Statement of Investments:
(a) Variable interest rate subject to periodic change.
(b) These notes were acquired for investment, not with intent to distribute or sell.
(c) Securities restricted as to public resale. These securities were aquired from 7/7/97 to 7/28/97 at a cost of par value.
At July 31, 1997, the aggregate value of these securities is $87 million, representing approximately 4.9% of net assets and
are valued at amortized cost.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997 (UNAUDITED)
Cost Value
-------- ---------
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments.... $1,853,228,652 $1,853,228,652
Cash....................................... 101,440
Interest receivable........................ 14,159,256
Prepaid expenses........................... 312,383
----------
1,867,801,731
===============
LIABILITIES: Due to The Dreyfus Corporation and affiliates 787,836
Due to Distributor......................... 28,074
Payable for investment securities purchased 73,905,262
Payable for shares of Common Stock redeemed 380,785
Accrued expenses........................... 582,032
------------
75,683,989
==========
NET ASSETS.................................................................. $1,792,117,742
=============
REPRESENTED BY: Paid-in capital............................ $1,792,189,566
Accumulated net realized gain (loss) on (71,824)
investments
-------------
NET ASSETS.................................................................. $1,792,117,742
==============
NET ASSET VALUE PER SHARE
--------------------------
Class A Class B
------ ------
Net Assets.................................................................. $ 759,012,758 $1,033,104,984
Shares Outstanding.......................................................... 759,057,119 1,033,132,447
NET ASSET VALUE PER SHARE................................................... $1.00 $1.00
====== ======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1997 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $43,119,053
EXPENSES: Management fee-Note 2(a)................... $ 3,768,674
Shareholder servicing costs-Note 2(c)...... 1,536,994
Distribution fees-Note 2(b)................ 1,507,469
Registration fees.......................... 139,721
Custodian fees............................. 91,963
Professional fees.......................... 37,732
Prospectus and shareholders' reports....... 16,851
Directors' fees and expenses-Note 2(d)..... 14,540
Miscellaneous.............................. 156,130
----------
Total Expenses....................... 7,270,074
Less-reduction in shareholder servicing
costs due to undertaking-Note 2(c)................(258,955)
----------
Net Expenses......................... 7,011,119
----------
INVESTMENT INCOME-NET....................................................... 36,107,934
NET REALIZED GAIN (LOSS) ON INVESTMENTS-Note 1(b)........................... (45,063)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $36,062,871
=============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
July 31, 1997 Year Ended
(Unaudited) January 31, 1997
--------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 36,107,934 $ 49,280,474
Net realized gain (loss) on investments................................ (45,063) (8,067)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations.... 36,062,871 49,272,407
----------- ----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares....................................................... (18,634,598) (34,241,653)
Class B shares....................................................... (17,473,336) (15,038,821)
----------- ----------
Total Dividends.................................................... (36,107,934) (49,280,474)
----------- ----------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares....................................................... 3,587,115,027 6,572,669,153
Class B shares....................................................... 1,850,178,251 1,019,289,506
Dividends reinvested:
Class A shares....................................................... 17,949,459 32,898,001
Class B shares....................................................... 17,105,531 14,154,018
Cost of shares redeemed:
Class A shares....................................................... (3,610,148,992) (6,496,025,709)
Class B shares....................................................... (1,203,360,769) (714,679,626)
----------- ----------
Increase (Decrease) in Net Assets from Capital Stock Transactions.. 658,838,507 428,305,343
----------- ----------
Total Increase (Decrease) in Net Assets.......................... 658,793,444 428,297,276
NET ASSETS:
Beginning of Period.................................................... 1,133,324,298 705,027,022
----------- ----------
End of Period.......................................................... $ 1,792,117,742 $ 1,133,324,298
========= =========
SEE 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.
Class A Shares
-------------------------------------------------------------------------
Six Months Ended
July 31, 1997 Year Ended January 31,
(Unaudited) 1997 1996 1995 1994 1993
PER SHARE DATA: -------------- ---- ---- ---- ---- -----
<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................. .024 .047 .053 .037 .025 .032
------ ---- ---- ---- ---- -----
Distributions:
Dividends from investment income-net.. (.024) (.047) (.053) (.037) (.025) (.032)
-------- ---- ---- ---- ---- -----
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 4.90%* 4.81% 5.42% 3.75% 2.56% 3.26%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .86%* .84% .86% .94% .94% .95%
Ratio of net investment income
to average net assets............... 4.84%* 4.71% 5.28% 3.68% 2.53% 3.22%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - - .01% .04% .02% -
Net Assets, end of period (000's Omitted) $759,013 $764,119 $654,581 $572,116 $616,072 $688,785
------------
*Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
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.
Class B Shares
----------------------------------------------------
Six Months Ended
July 31, 1997 Year Ended January 31,
PER SHARE DATA: (Unaudited) 1997 1996(1)
---------------- ------ ------
<S> <C> <C> <C>
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00
-------- ------ ------
Investment Operations:
Investment income-net............................. .023 .046 .043
-------- ------ ------
Distributions:
Dividends from investment income-net.............. (.023) (.046) (.043)
-------- ------ ------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00
==== ==== ====
TOTAL INVESTMENT RETURN............................... 4.76%(2) 4.65% 5.18%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... 1.00%(2) 1.00% 1.00%(2)
Ratio of net investment income
to average net assets........................... 4.70%(2) 4.56% 5.00%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.............. .07%(2) .07% .07%(2)
Net Assets, end of period (000's Omitted)......... $1,033,105 $369,205 $50,446
- ---------------
(1) From March 31, 1995 (commencement of initial offering) to January
31, 1996.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
General Money Market Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. 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. 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. (the "Distributor") is the distributor
of the Fund's shares, which are sold to the public without a sales load. The
Fund is authorized to issue 16 billion shares of $.001 par value Common
Stock. The Fund currently offers two classes of shares: Class A (15 billion
shares authorized) and Class B (1 billion shares authorized). Class A shares
and Class B shares are identical except for the services offered to and the
expenses borne by each class and certain voting rights. Class A shares are
subject to a Service Plan adopted pursuant to Rule 12b-1 under the Act, Class
B shares are subject to a Distribution Plan adopted pursuant to Rule 12b-1
under the Act and, in addition, Class B shares are charged directly for
sub-accounting services provided by Service Agents (a securities dealer
financial institution or other industry professional) at an annual rate of
.05 of 1% of the value of the average daily net assets of Class B shares.
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. 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.
(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, if any, 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
and excise taxes.
The Fund has an unused capital loss carryover of approximately $27,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 1997. If not
applied, $12,000 of the carryover expires in fiscal 2002 and $15,000 expires
in fiscal 2005.
At July 31, 1997, 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).
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed 11\2% of the value of the Fund's average net assets, the
Fund may deduct from payments to be made to the Manager, or the Manager will
bear such excess expense. There was no expense reimbursement during the
period ended July 31, 1997, pursuant to the Agreement.
(B) Under the Service Plan with respect to Class A shares (the "Plan"),
adopted pursuant to Rule 12b-1 under the Act, the Fund directly bears the
cost of preparing, printing and distributing prospectuses and statements of
additional information and implementing and operating the Plan. In addition,
the Fund reimburses (a) the Distributor for payments made for distributing
Class A shares and servicing shareholder accounts ("Servicing") and (b) the
Manager, Dreyfus Service Corporation, a wholly-owned subsidiary of the
Manager, and their affiliate (collectively, "Dreyfus") for payments made for
Servicing, at an aggregate annual rate of up to .20 of 1% of the value of the
average daily net assets of Class A. Both the Distributor and Dreyfus may pay
Service Agents a fee in respect of Class A shares owned by shareholders with
whom the Service Agent has a Servicing relationship or for whom the Service
Agent is the dealer or holder of record. The schedule of such fees and the
basis upon which such fees will be paid shall be determined from time to time
by the Fund's Board of Directors. If a holder of class A shares ceases to be
a client of a Service Agent, but continues to hold Class A shares, Dreyfus
will be permitted to act as a Service Agent in respect of such Fund
shareholders and receive payments under the Service Plan for Servicing. The
fees payable for Servicing are payable without regard to actual expenses
incurred. During the period ended July 31, 1997, $769,522 was charged to the
Fund pursuant to the Plan.
Under the Distribution Plan with respect to Class B shares ("Class B
Distribution Plan"), adopted pursuant to Rule 12b-1 under the Act, the Fund
directly bears the costs of preparing, printing and distributing prospectuses
and statements of additional information and of implementing and operating
the Class B Distribution Plan. In addition, the Fund reimburses the
Distributor for payments made to third parties for distributing Class B
shares at an aggregate annual rate of up to .20 of 1% of the value of the
average daily net assets of Class B. During the period ended July 31, 1997,
$737,947 was charged to the Fund pursuant to the Class B Distribution Plan.
(C) Under the Fund's Shareholder Services Plan with respect to Class A
("Class A 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 of Class A 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 July 31, 1997,
the Fund was charged an aggregate of $337,129 pursuant to the Class A
Shareholder Services Plan.
Under the Fund's Shareholder Services Plan with respect to Class B
("Class B Shareholder Services Plan"), the Fund pays the Distributor for the
provision of certain services to the holders of Class B shares a fee at an
annual rate of .25 of 1% of the value of the average daily net assets of
Class B. 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. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents.
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Manager has undertaken through January 31, 1998, that if the
aggregate
expenses of Class B of the Fund (exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses) exceed
1% of the value of the average daily net assets of Class B, the Manager will
reimburse the expenses of the Fund under the Class B Shareholder Services
Plan to the extent of any excess expense and up to the full fee payable under
the Class B Shareholder Services Plan. During the period ended July 31, 1997,
$922,434 was charged to the Fund pursuant to the Class B Shareholder Services
Plan, of which $258,955 was reimbursed by the Manager.
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. Such
compensation amounted to $94,900 during the period ended July 31, 1997.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
Registration Mark
[Dreyfus lion "d" logo]
GENERAL MONEY MARKET FUND, 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. 196/696SA977
Registration Mark
[Dreyfus logo]
General
Money Market
Fund, Inc.
Semi-Annual
Report
July 31, 1997
