GENERAL MUNICIPAL BOND FUND, INC.
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LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General Municipal Bond
Fund, Inc. for the six-month period ended August 31, 1998. Your Fund produced a
total return, including share price changes and dividend income generated, of
3.32%,* and an annualized tax-free distribution rate per share of 5.05%.**
THE ECONOMY
Having consistently viewed inflation as the primary threat to our strong
growth, low unemployment economy, the Federal Reserve Board (the "Fed") now has
another factor to ponder in setting monetary policy: the risk of global
recession. The wave of economic uncertainty that shook stock markets and caused
currencies to devalue, begun in Thailand on July 2, 1997 (the onset of the Asian
financial crisis) , has spread through Asia and around the world. By the end of
the reporting period, Russia had devalued its ruble. All this financial tumult
has underscored just how economically interrelated the world's nations are. In
fact, the fragility of global financial markets has been a key factor in the
Fed' s reluctance to raise interest rates in an economy now in its seventh year
of economic expansion. It feared that a rise in rates might threaten the
stability of other currencies.
There were additional economic factors that stayed the Fed's hand. Inflation
has remained tame, comfortably below 2% on the consumer level, and is minimal at
the production level of the economy as well. One reason for the low inflation
rate is the strong dollar, which keeps imports cheap; domestic producers are
constrained from raising prices by competition from cheaper foreign goods. This
has all been good news for consumers, who account for two-thirds of all economic
activity. Bolstered by solid wage gains and abundant jobs, consumers have been a
driving positive force in the economy. Whether it was housing, automobiles, big
ticket or small ticket items, their spending and their overall economic optimism
both were robust. But by the end of the reporting period, there were hints that
this could change. The political and economic instability in Russia jolted the
U.S. stock market in August. The stock market selloff could cause consumers to
grow less confident and curtail spending. Of course, the larger-scale economic
fundamentals for consumers remain positive: inflation is low and jobs plentiful.
The wave of devaluations that began over a year ago in Southeast Asia
has become stronger. Collapsing currencies, the latest being the Russian ruble,
have triggered often violent reactions in foreign financial markets. The
distant financial turmoil has resulted in a reduced demand for U.S. exports,
and has begun to curtail domestic corporate profit growth. In the second
quarter, profits declined year-over-year for the first time in almost a decade.
Mirroring the slide in corporate profits, industrial production declined in June
and July. In addition to the profit pinch, second-quarter economic growth
lessened to 1.6%, the slowest rate in three years and dramatically below the
5.5% rate reported for the first quarter. We remain alert for additional
signs of the domestic effects of global financial problems.
MARKET ENVIRONMENT
The global flight to quality resulting from the crises in Asia and Russia has
forced bond prices higher while stocks suffer. While most fixed-income asset
classes have benefited, the move to lower yields has not been commensurate. The
U.S. Treasury market has been the major beneficiary of the shift in assets from
domestic stock investors and foreign accounts. In the wake of the plunge in
stock prices over the past several weeks, the yield on the bellwether 30-year
Treasury fell to an historic low. Because municipal bonds have not responded to
the same degree, the disparity between the two markets has widened to the point
where, in many instances, high-grade tax-exempts are yielding 100% of taxable
Treasury bonds. All along the maturity range, municipal yield ratios (a
municipal bond's yield divided by the same maturity Treasury bond's yield) are
at their highest levels of the past year.
<PAGE>
Investors are beginning to shift more assets to tax-exempts. We view this move
as a positive sign that more individuals are realizing the attractiveness of
municipal bonds. However, the trend in retail demand has not been as significant
as might be expected. The supply of new tax-exempt issues still presents a
challenge to the market; it is expected that 1998's level could surpass the
prior record of $290 billion reached five years ago.
It might take another spike in Treasury bond prices or further erosion in
stocks before municipals begin to gain momentum. Given their "cheapness,"
municipals are arguably an attractive investment, particularly for nervous stock
investors. Should the stock market fail to make a meaningful recovery or move
lower in the weeks ahead, municipal bonds might gain in popularity.
PORTFOLIO OVERVIEW
While U.S. Treasury securities have rallied to new highs recently, municipals
have failed to match the price levels they attained in January. Despite signs of
a moderating economic climate, contained inflation, and renewed hopes of a Fed
easing of short-term interest rates, the movement of tax-exempt prices has been
constrained. Our investment strategy continues to maintain a neutral view on the
prospect for a substantial move in tax-exempt rates. Therefore, the Fund's risk
profile as measured by duration is being maintained slightly shorter than that
of the Lehman Brothers Municipal Bond Index. Instead, our objective is to focus
on the generation of tax-exempt income, recognizing that a modest amount of
capital appreciation might be lost during any meaningful rally. To date, such a
rally has not materialized in municipals. While we think it is still possible
that long-term Treasury yields might drop to 5% from today' s level of
approximately 5.25%, it does not appear that municipals will match such a rate
move.
Given the potential for a weakening domestic economy, we are mindful that
credit quality and credit spreads merit careful monitoring. The yield
differentials between the highest grade and lower rated credits have narrowed to
historically tight spreads. Fund purchases have generally been concentrated in
better quality credits; currently, over one-half of the Fund's securities carry
a rating of "A" or better.
We believe that the current domestic economic environment, coupled with
financial crises in Asia and Russia, creates a still favorable investment
environment. However, for the reasons cited, we don't believe that our current
portfolio position needs to become more aggressive. Should the demand for
municipals begin to accelerate, then we might find it necessary to reconsider
our posture. In the meantime, we continue to mine for those investment
opportunities that meet our investment criteria and will add incremental yield
and performance to the Fund.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
September 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the net asset value
per share at the end of the period, adjusted for any capital gain distributions.
Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
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<TABLE>
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GENERAL MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS AUGUST 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--97.8% Amount Value
- ------------------------------------------------------- ________ _________
<S> <C> <C>
Alabama--2.7%
Alabama Industrial Development Authority, SWDR (Pine City Fiber Co.)
6.45%, 12/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000,000 $ 13,165,030
Courtland Industrial Development Authority, SWDR
(Champion International Corp. Project) 6.375%, 3/1/2029 . . . . . . . . . . . . . . . . 4,000,000 4,269,040
Arkansas--.8%
Little River County, Industrial Revenue, Refunding (Georgia--Pacific Corp.
Project)
5.60%, 10/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,062,750
California--2.3%
California Pollution Control Financing Authority, PCR, Refunding
(San Diego Gas and Electric Co.) 5.90%, 6/1/2014 (Insured; MBIA) . . . . . . . . . . . . 9,715,000 11,088,895
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
Refunding 6%, 7/1/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 3,900,000 4,281,420
Colorado--7.2%
Colorado Housing Finance Authority, Single Family Program 7.55%, 8/1/2023. . . . . . . . . 2,420,000 2,560,699
Denver City and County:
Airport System Revenue:
7.25%, 11/15/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,065,000 4,551,865
7.25%, 11/15/2012 (Prerefunded 11/15/2002) (a) . . . . . . . . . . . . . . . . . . . . 1,035,000 1,187,766
8.25%, 11/15/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,125,000 4,532,179
7.75%, 11/15/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,365,000 5,976,878
7.75%, 11/15/2021 (Prerefunded 11/15/2001) (a) . . . . . . . . . . . . . . . . . . . . 1,395,000 1,583,757
7.25%, 11/15/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,985,000 4,446,025
7.25%, 11/15/2023 (Prerefunded 11/15/2002) (a) . . . . . . . . . . . . . . . . . . . . 1,200,000 1,377,120
8.00%, 11/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,890,000 4,288,764
8.00%, 11/15/2025 (Prerefunded 11/15/2001) (a) . . . . . . . . . . . . . . . . . . . . 1,360,000 1,530,082
Special Facilities Airport Revenue (United Airlines Project) 6.875%, 10/1/2032 . . . . . 9,235,000 10,039,368
Lakewood, MFHR, Mortgage 6.70%, 10/1/2036 (Insured; FHA) . . . . . . . . . . . . . . . . . 5,000,000 5,403,600
Connecticut--1.0%
Connecticut Housing Finance Authority, Refunding (Housing Mortgage Finance
Program)
6%, 11/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,995,000 6,336,475
Florida--3.6%
Palm Beach County, Solid Waste IDR (Osceola Power Ltd. Partnership)
6.95%, 1/1/2022 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,370,000
Pinellas County Housing Facilities Authority, SFMR (Multi-County Program)
6.70%, 2/1/2028 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,920,000 6,376,314
Polk County Industrial Development Authority, IDR 7.525%, 1/1/2015 . . . . . . . . . . . . 13,840,000 14,910,524
Georgia--1.6%
Effingham County Development Authority, SWDR 5.625%, 7/1/2018. . . . . . . . . . . . . . . 4,000,000 4,047,600
Fulton County Development Authority, Special Facilities Revenue (Delta Airlines
Inc. Project)
5.45%, 5/1/2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,450,000 6,471,027
<PAGE>
GENERAL MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
__________ _________
Idaho--.6%
Idaho Housing Agency, Housing Revenue (Blue Meadows Project)
7.20%, 7/1/2033 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,500,000 $ 3,676,085
Illinois--4.9%
Chicago, Gas Supply Revenue (People's Gas Light and Coke Co. Project)
8.10%, 5/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,252,570
Chicago-O'Hare International Airport, Special Facility Revenue
(United Airlines Inc. Project):
8.40%, 5/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,690,000 2,835,664
8.50%, 5/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,701,225
8.85%, 5/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,040,000 6,740,580
Illinois Health Facilities Authority, Health Hospital and Nursing Home Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015 (Prerefunded 12/15/2000) (a) . . . . . . . 2,000,000 2,285,440
(Residential Centers Inc.) 8.50%, 8/15/2016 . . . . . . . . . . . . . . . . . . . . . . 5,600,000 6,231,456
Village of Romeoville 8.375%, 1/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . 7,495,000 8,282,949
Indiana--1.1%
Fishers, Economic Development Revenue, First Mortgage (United Student Funds
Inc.)
8.375%, 9/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,044,700
Indiana State Development Finance Authority Revenue, Refunding
(Inland Steel Facilities) 5.75%, 10/1/2011 . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,105,900
Iowa--.6%
Iowa Finance Authority, Single Family Mortgage 6.10%, 1/1/2028 . . . . . . . . . . . . . . 4,000,000 4,238,680
Kentucky--4.7%
Kenton County Airport Board, Airport Revenue
(Special Facilities--Delta Airlines Project):
7.50%, 2/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,550,000 12,733,182
7.125%, 2/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,630,000 5,042,487
City of Mount Sterling, Revenue (Kentucky League of Cities Funding Trust Lease
Program) 6.10%, 3/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500,000 6,237,000
Pendleton County, Multi-County Lease Revenue (Kentucky Association of Counties
Leasing Trust Program) 6.40%, 3/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 7,073,880
Louisiana--1.8%
Louisiana Public Facilities Authority, HR
(Louisiana Association of Independent Colleges and Universities Facilities Loan
Program)
7%, 12/1/2017 (Prerefunded 12/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . . 6,195,000 7,038,573
Parish of Saint James, SWDR (Freeport-McMoRan Partnership Project)
7.70%, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,140,000 4,507,673
Maine--1.1%
Maine Finance Authority, SWDR (Boise Cascade Corp. Project) 7.90%, 6/1/2015. . . . . . . . 6,900,000 7,386,933
<PAGE>
GENERAL MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
__________ _________
Maryland--1.9%
Maryland Community Development Administration, Department of Housing and
Community Development (Single Family Program) 6.55%, 4/1/2026 . . . . . . . . . . . . . $ 9,970,000 $ 10,749,554
Montgomery County Housing Opportunities Commission, MFMR 7.375%, 7/1/2032. . . . . . . . . 1,405,000 1,468,520
Massachusetts--2.8%
Massachusetts Health and Educational Facilities Authority, Revenue
(New England Deaconess Hospital Issue) 7.20%, 4/1/2022 (Prerefunded 4/1/2001) (a) . . . 5,070,000 5,587,039
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt Project)
10%, 3/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,344,700
Massachusetts Water Resource Authority, Water Revenue 4.75%, 8/1/2027 (Insured; FSA).. . . 10,100,000 9,708,221
Michigan--8.6%
Detroit, Water Supply System Revenue 5%, 7/1/2027 (Insured; MBIA). . . . . . . . . . . . . 6,750,000 6,643,148
Michigan Hospital Finance Authority, HR, Refunding:
(Genesys Health System):
8.10%, 10/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,518,100
8.125%, 10/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,910,000 6,189,448
7.50%, 10/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 9,659,840
(Oakwood Obligation Group) 5%, 8/15/2031 . . . . . . . . . . . . . . . . . . . . . . . . 12,150,000 11,852,690
Michigan Strategic Fund, SWDR, Refunding (Genesee Power Station Project)
7.50%, 1/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,635,530
Romulus Economic Development Corp., Economic Development Revenue, Refunding
(HIR Limited Partnership Project)
7%, 11/1/2015 (Surety Bond; ITT Lyndon Property Co. Inc.) . . . . . . . . . . . . . . . 5,000,000 5,588,300
Wayne Charter County, Special Airport Facilities Revenue
(American Airlines Inc. Project) 7%, 12/1/2011. . . . . . . . . . . . . . . . . . . . . 5,620,000 6,277,203
Minnesota--1.1%
Washington County Housing and Redevelopment Authority, Hospital Facility Revenue
(Healtheast Project) 5.50%, 11/15/2027 (Insured; ACA) . . . . . . . . . . . . . . . . . 7,000,000 7,158,830
Mississippi--1.4%
Clairborne County, PCR, Refunding (System Energy Resources Inc.)
7.30%, 5/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,273,150
Warren County, Environmental Improvement Revenue
(International Paper Corp.) 5.55%, 8/15/2022 . . . . . . . . . . . . . . . . . . . . . . 4,200,000 4,249,308
Missouri--.5%
Missouri Health and Educational Facilities Authority, Health Facilities Revenue
(Children's Mercy Hospital) 5.30%, 5/15/2028. . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,530,730
New Hampshire--1.8%
New Hampshire Higher Educational and Health Facilities Authority, Revenue
(Crotched Mountain Rehabilitation Center) 7.75%, 1/1/2020 (Prerefunded 1/1/2000) (a) . . 2,200,000 2,358,268
New Hampshire Housing Finance Authority, Single Family Residential Mortgage:
7.75%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,445,000 5,807,800
7.70%, 7/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,555,000 3,716,681
<PAGE>
GENERAL MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- __________ _________
New Mexico--1.2%
Farmington, PCR, Refunding (Public Service Company of San Juan Project)
6.375%, 4/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,925,000 $ 7,573,942
New York--10.1%
Long Island Power Authority, Electric System Revenue, Refunding
5%, 12/1/2018 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,300,000 7,276,421
New York City:
5%, 8/15/2028. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 7,312,200
Refunding 5%, 8/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,797,200
New York State Dormitory Authority, Revenue:
(Mount Sinai School of Medicine) 5.15%, 7/1/2024 (Insured; MBIA) . . . . . . . . . . . . 4,000,000 4,178,440
(State University Educational Facilities) 7.50%, 5/15/2013 . . . . . . . . . . . . . . . 2,500,000 3,222,950
New York State Local Government Assistance Corp., Sales Tax Revenue,
Refunding 5.25%, 4/1/2016 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . 6,410,000 6,800,754
New York State Urban Development Corp., Lease Revenue, Refunding
(Correctional Capital Facilities):
5.25%, 1/1/2014 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,925,000 7,372,563
5%, 1/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,780,800
Triborough Bridge and Tunnel Authority, Revenues, General Purpose, Refunding
5.50%, 1/1/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,865,600
North Carolina--2.5%
Charlotte North Carolina Special Facilities, Airport and Marina Revenue
(Charlotte--Douglas International Airport) 5.60%, 7/1/2027 . . . . . . . . . . . . . . . 8,480,000 8,544,957
North Carolina Medical Care Commission, HR (Firsthealth of the Carolinas)
4.75%, 10/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,180,000 7,784,006
North Dakota--1.1%
North Dakota Housing Finance Agency, SFMR:
7.30%, 7/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400,000 3,586,490
7.75%, 7/1/2024 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,620,000 3,845,526
Ohio--3.9%
Cleveland Airport, Port, Airport and Marina Revenue (Continental Airlines Inc.
Project)
5.375%, 9/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,120,000 4,104,880
Cleveland, Parking Facilities Improvement Revenue
8.10%, 9/15/2022 (Prerefunded 9/15/2002) (a) . . . . . . . . . . . . . . . . . . . . . . 2,300,000 2,692,817
Hamilton County, Sales Tax Revenue (Hamilton County Football Project)
5%, 12/1/2027 (Insured; MBIA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,930,800
Ohio State Water Development Authority, Pollution Control Facilities Revenue,
Refunding (Cleveland Electric) 6.10%, 8/1/2020 . . . . . . . . . . . . . . . . . . . . . 8,500,000 8,913,950
Oklahoma--4.7%
McGee Creek Authority, Water Revenue 6%, 1/1/2013 (Insured; MBIA). . . . . . . . . . . . . 6,025,000 6,892,480
<PAGE>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- __________ _________
Oklahoma (continued)
Trustees of the Tulsa Municipal Airport Trust, Revenue
(American Airlines Inc. Project):
7.375%, 12/1/2020 (Guaranteed; AMR Corp.) . . . . . . . . . . . . . . . . . . . . . . $ 9,850,000 $ 10,609,139
7.60%, 12/1/2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000,000 13,104,360
Pennsylvania--1.1%
Lehigh County General Purpose Authority, Revenue (Wiley House)
9.50%, 11/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 4,133,255
Montgomery County Higher Education and Health Authority, Revenue
(Northwestern Corp.) 8.50%, 6/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,293,400
Rhode Island--1.2%
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership E-1) 7.55%, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,305,000 4,576,387
(Rental Housing Program) 7.95%, 10/1/2020 . . . . . . . . . . . . . . . . . . . . . . . 3,195,000 3,344,206
South Carolina--1.4%
Piedmont Municipal Power Agency, Electric Revenue, Refunding
6.55%, 1/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,100,000 9,112,831
Texas--9.4%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project) 7%, 12/1/2011 (Guaranteed; AMR Corp.) . . . . . . . . . 10,000,000 11,887,600
Bexar Metropolitan Water District, Waterworks System Revenue, Refunding
5%, 5/1/2038 (Insured; MBIA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,875,000 8,716,581
Bell County Health Facilities Development Corp., Revenue
(Southern Healthcare-Southview) 10.50%, 3/1/2020 (Prerefunded 3/1/2000) (a) . . . . . . 2,825,000 3,151,316
Dallas Civic Center, Refunding and Improvement 4.875%, 8/15/2023 (Insured; MBIA) . . . . . 5,000,000 4,904,350
Dallas--Fort Worth International Airport Facility Improvement Corp., Revenue
(Delta Airlines Inc.):
7.625%, 11/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,429,174
7.125%, 11/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,354,000
Dickens County, Lease Obligation (Jail and Detention Facility Project)
8.875%, 4/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,950,000 4,039,389
Gulf Coast Waste Disposal Authority, SWDR (Champion International Corp. Project):
7.25%, 4/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,810,000 3,089,735
7.25%, 4/1/2017 (Prerefunded; 4/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . 1,925,000 2,166,279
Harlandale Independent School District
4.50%, 8/15/2023 (Guaranteed; Permanent School Fund) . . . . . . . . . . . . . . . . . 10,685,000 9,906,277
Houston, Airport System Revenue (Continental Airlines Project):
6.125% (Series B) 7/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,049,060
6.125% (Series C) 7/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,277,750
Utah--.7%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration Project) 9.25%, 7/1/2018 (b). . . . 8,000,000 4,801,600
<PAGE>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- __________ _________
Washington--3.9%
Chelan County Public Utility District Number 001, Consolidated Revenue
(Chelan Hydroelectric) 7.50%, 7/1/2011 . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,655,000 $ 7,027,525
Washington Housing Finance Commission, Nonprofit Housing Revenue
(Seattle University Auxiliary Services Project) 5.30%, 7/1/2031 (LOC; Bank of America) . . 5,380,000 5,435,037
Washington Public Power Supply System, Revenue, Refunding
(Nuclear Project Number 3) 7.125%, 7/1/2016 (Insured; MBIA) . . . . . . . . . . . . . . 10,425,000 13,139,670
Wyoming--.8%
Wyoming Community Development Authority, Housing Revenue 6.25%, 6/1/2027 . . . . . . . . . 5,000,000 5,305,750
U.S. Related--3.7%
Puerto Rico Highway and Transportation Authority, Transportation Revenue,
Refunding
5%, 7/1/2038. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,645,000 24,245,751
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $600,599,206) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $643,166,413
=============
Short-Term Municipal Investments--3.6%
- -------------------------------------------------------
Alabama--1.2%
Mcintosh Industrial Development Board, Environmental Improvement Revenue,
VRDN 3.60% (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000,000 $ 8,000,000
Michigan--.6%
Midland Economic Development Corp., Industrial Revenue, VRDN
(Dow Chemical Co. Project) 3.75% (c) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,100,000 4,100,000
Mississippi--1.8%
Jackson County, Port Facility Revenue, Refunding, VRDN
(Chevron U.S.A. Inc Project) 3.65% (c) . . . . . . . . . . . . . . . . . . . . . . . . . 11,610,000 11,610,000
_____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $23,710,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,710,000
=============
TOTAL INVESTMENTS
(cost $624,309,206) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101.4% $666,876,413
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (1.4%) $ (9,429,856)
======= =============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $657,446,557
======= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
ACA American Capital Access MFHR Multi-Family Housing Revenue
AMBAC American Municipal Bond Assurance Corporation MFMR Multi-Family Mortgage Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
Insurance Corporation
Summary of Combined Ratings (Unaudited)
</TABLE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ___________________
<S> <C> <C> <C>
AAA Aaa AAA 23.2%
AA Aa AA 12.0
A A A 13.0
BBB Baa BBB 31.9
BB Ba BB 4.8
F1 Mig1 SP1 3.6
Not Rated (d) Not Rated (d) Not Rated (d) 11.5
_______
100.0%
=======
Notes to Statement of Investments:
</TABLE>
- -----------------------------------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and interest
on the municipal issue and to retire the bonds in full at the earliest
refunding date.
(b) Non-income accruing security.
(c) Securities payable on demand. Variable interest rate--subject to periodic
change.
(d) Securities which, while not rated by Fitch, Moody's and Standard & Poor's,
have been determined by the Manager to be of comparable quality to those rated
securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $624,309,206 $666,876,413
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 3,178,476
Interest receivable . . . . . . . . . . . . . . . . . . . 9,982,991
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 37,124
_____________
680,075,004
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 379,720
Due to Distributor . . . . . . . . . . . . . . . . . . . 33,809
Payable for investment securities purchased . . . . . . . 22,005,486
Payable for shares of Common Stock redeemed . . . . . . . 48,423
Accrued expenses . . . . . . . . . . . . . . . . . . . . 161,009
_____________
22,628,447
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $657,446,557
=============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $612,660,501
Accumulated net realized gain (loss) on investments . . . 2,218,849
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 42,567,207
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $657,446,557
=============
SHARES OUTSTANDING
(150 MILLION SHARES OF $.01 PAR VALUE COMMON STOCK AUTHORIZED) . . . . . . . . . . . . . . 44,198,313
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $14.87
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $19,336,558
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 1,778,957
Shareholder servicing costs--Note 3(b) . . . . . . . . . 867,671
Custodian fees . . . . . . . . . . . . . . . . . . . . . 28,202
Registration fees . . . . . . . . . . . . . . . . . . . . 26,720
Professional fees . . . . . . . . . . . . . . . . . . . . 25,861
Directors' fees and expenses--Note 3(c) . . . . . . . . . 23,819
Prospectus and shareholders' reports--Note 3(b) . . . . . 21,987
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 2,489
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 12,679
____________
Total Expenses . . . . . . . . . . . . . . . . . . . . 2,788,385
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,548,173
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ 2,170,706
Net unrealized appreciation (depreciation) on investments . . 2,677,104
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 4,847,810
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $21,395,983
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,548,173 $ 36,722,507
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . 2,170,706 10,848,626
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . 2,677,104 11,450,416
_____________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . 21,395,983 59,021,549
_____________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,639,314) (36,631,366)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . (7,888,353) (837,108)
_____________ ______________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,527,667) (37,468,474)
_____________ ______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . 345,028,538 1,796,646,098
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,600,541 25,404,886
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (355,566,169) (1,880,181,758)
_____________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . . . 7,062,910 (58,130,774)
_____________ ______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . 3,931,226 (36,577,699)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653,515,331 690,093,030
_____________ ______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $657,446,557 $ 653,515,331
============= ==============
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . -- $ 91,141
_____________ ______________
Shares Shares
_____________ ______________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,213,112 123,506,929
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 1,186,676 1,727,793
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,907,243) (129,007,469)
_____________ ______________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . . . 492,545 (3,772,747)
============= ==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
GENERAL MUNICIPAL BOND 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.
<TABLE>
<CAPTION>
Six Months Ended
August 31, 1998 Fiscal Year Ended February,
___________________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . $14.95 $14.53 $15.00 $14.45 $15.46 $15.74
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . .38 .77 .78 .82 .86 .90
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . .11 .44 (.21) .57 (.89) (.04)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . .49 1.21 .57 1.39 (.03) .86
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . (.39) (.77) (.78) (.82) (.86) (.91)
Dividends from net realized gain
on investments . . . . . . . . . . . . (.18) (.02) (.26) (.02) (.12) (.23)
Dividends in excess of net realized gain
on investments . . . . . . . . . . . . -- -- -- -- .00(1) --
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . (.57) (.79) (1.04) (.84) (.98) (1.14)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . $14.87 $14.95 $14.53 $15.00 $14.45 $15.46
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . . . . . . 6.59%(2) 8.52% 4.04% 9.79% .07% 5.50%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . .. .86%(2) .87% .88% .88% .87% .82%
Ratio of net investment income
to average net assets . . . . . . . . . 5.09%(2) 5.23% 5.40% 5.50% 5.99% 5.71%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . -- -- -- -- -- .03%
Portfolio Turnover Rate . . . . . . . . . . 45.17%(3) 91.37% 115.62% 114.78% 67.87% 59.19%
Net Assets, end of period (000's Omitted) . $657,447 $653,515 $690,093 $867,157 $934,277 $1,240,815
- -----------------------------
(1) Amount represents less than $.01 per share.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
General Municipal Bond Fund, Inc. (the "Fund" ) is registered under the
Investment Company Act of 1940, as amended (the "Act") as a diversified open-end
management investment company. The Fund's investment objective is to maximize
current income exempt from Federal income tax to the extent consistent with the
preservation of capital. The Dreyfus Corporation (the "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' 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 in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(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,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custodian
agreement, the Fund receives net earnings credits based on available cash
balances left on deposit.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. 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 of 1986, as
amended (the "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, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended August
31, 1998, the Fund did not borrow under the Facility.
<PAGE>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3--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 .55 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, commitment fees and extraordinary
expenses, exceed 1 1/2% of the value of the Fund's average daily net assets,
the Fund may deduct from payments to be made to the Manager, or the Manager
will bear such excess expense. During the period ended August 31, 1998, there
was no expense reimbursement pursuant to the Agreement.
(b) Under a Service Plan (the "Plan") adopted pursuant to Rule 12b-1 under the
Act, the Fund (a) reimburses the Distributor for payments to certain Service
Agents (a securities dealer, financial institution or other industry
professional) for distributing the Fund' s shares and servicing shareholder
accounts ("Servicing") and (b) pays the Manager, Dreyfus Service Corporation, a
wholly-owned subsidiary of the Manager, and any affiliate of either of them
(collectively, "Dreyfus") for advertising and marketing relating to the Fund and
for Servicing, at an aggregate annual rate of .20 of 1% of the value of the
Fund's average daily net assets. Both the Distributor and Dreyfus may pay one or
more Service Agents a fee in respect of the Fund's 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. Both the Distributor and Dreyfus
determine the amounts, if any, to be paid to Service Agents under the Plan and
the basis on which such payments are made. The fees payable under the Plan are
payable without regard to actual expenses incurred. The Plan also separately
provides for the Fund to bear the costs of preparing, printing and distributing
certain of the Fund's prospectuses and statements of additional information and
costs associated with implementing and operating the Plan, not to exceed the
greater of $100,000 or .005 of 1% of the value of the Fund's average daily net
assets for any full fiscal year. During the period ended August 31, 1998, the
Fund was charged $651,144 pursuant to the 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. During the period
ended August 31, 1998, the Fund was charged $140,016 pursuant to the transfer
agency agreement.
(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.
(d) A .10% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the redemption or exchange occurs less than fifteen
days following the date of issuance. During the period ended August 31, 1998,
the redemption fees amounted to $11,911.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended August 31, 1998,
amounted to $300,121,205 and $278,212,224, respectively.
At August 31, 1998, accumulated net unrealized appreciation on investments was
$42,567,207, consisting of $46,498,129 gross unrealized appreciation and
$3,930,922 gross unrealized depreciation.
At August 31, 1998, 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).
<PAGE>
Dreyfus lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
GENERAL MUNICIPAL BOND 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. 106SA988
General Municipal
Bond Fund, Inc.
Semi-Annual
Report
August 31, 1998
<PAGE>
