YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General Municipal Bond
Fund, Inc. for the 12-month period ended February 28, 1999. Your fund produced a
total return, including share price changes and dividend income generated, of
4.47%,* and an annualized tax-free distribution rate per share of 5.03%.**
THE ECONOMY
The economy in the 12-month period ended February 28, 1999 had several
persistent themes. These included weakness in the world economy, strength in the
U.S. economy, pervasive disinflation and action by central banks to lower
interest rates in many parts of the world.
Weakness in the world economy started in Asia with economic and financial
stresses throughout most of the continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most of
the rest of Asia. The most severe phase occurred when Asian currencies dropped
and short-term interest rates rose. Tentative signs of a bottoming of the
crises in Asia had emerged by the end of your fund's fiscal year. However, Latin
America had begun to weaken in the aftermath of Brazilian economic weakness.
Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began 1998 at a modest pace and showed signs of stagnation by year-end. Even so,
the new European central bank postponed any reduction in interest rates in early
1999, probably because of a desire to build anti-inflationary credibility.
The U.S. economy over the last year grew at an impressively high rate despite
the economic weakness overseas. A major reason for this was that the negative
effects of foreign economic weakness on the traditional industrial sector were
offset by positive effects elsewhere in the economy. Low inflation and low
interest rates stimulated the housing and consumer sectors, while the technology
sector continued to expand.
The Federal Reserve Board eased monetary policy three times beginning on
September 30, 1998, lowering the Federal Funds rate from 5.50% to 4.75%. This
was not because of any shortfall in U.S. economic growth. Rather, it was a
response to the financial stresses that started with the Russian default in the
summer of 1998 and culminated in the liquidity crisis of an overleveraged hedge
fund in the September/October period. Despite widespread fears, the U.S. economy
never did slow. Long-term interest rates declined into early October, when fears
of financial crisis, deflation and possible economic recession were at their
greatest. However, long-term rates then drifted higher as the financial stresses
eased and the feared economic slowdown did not materialize.
MARKET ENVIRONMENT
So far in 1999, the environment for municipal securities has been favorable.
This has led to municipals performing better than their taxable counterparts.
Investors continue to display a desire to add to their holdings of tax-exempt
bonds, while the available supply of new issues to date has slowed considerably
from last year's near record of $284 billion. In the current environment, it is
unlikely that this year's calendar will surpass last year's issuance. The
market' s most recent adjustment to higher yields does not seem to have deterred
investor buying. This support for tax-exempt securities is best illustrated by
the municipals performing comparably to their Treasury counterparts. For much of
1998, the U.S. Treasury market was well supported in the wake of global turmoil.
Treasury prices were bid sharply higher in the flight to safety, while municipal
yields became increasingly attractive. Historically, long-term high-grade
municipals have yielded 80% to 85% of the yields available on comparable
Treasuries. During the height of last year's turmoil, the ratio rose to 100%. In
recent weeks this ratio has fallen below 90%, as the rise in Treasury yields has
outpaced that of municipals. Much of the municipal market's support is directly
attributable to crossover buyers who "cross over" from purchasing taxable bonds
to the cheaper municipals in order to capitalize at a later date when the yield
ratios normalize. Such a reversal could potentially provide a large source of
municipal supply for the market. This potential, coupled with uncertainty
regarding what the Federal Reserve Board's leaning is on the economy's strength
and interest rates, will keep the municipal market on alert.
PORTFOLIO OVERVIEW
Interest rates made two notable moves during the past twelve months. Early in
the year, rates moved higher in response to strong economic readings. Rising
international concerns and a moderation in U.S. growth quelled the market's
fears, leading to lower yields over the ensuing months, before they finally
turned up again late in the fund's fiscal year. Our focus on income generation
worked to the fund' s benefit early on, when long-term interest rates were
rising. During the ensuing summer rally, greater exposure to longer duration
bonds benefited those funds structured accordingly. Since the General Municipal
Bond Fund was structured more defensively (measured by its duration) than other
tax-exempt funds, its participation in the market rally, while significant, did
not keep pace with the majority of funds, which were more aggressively
structured. In summary, the fund, because of its more conservative structure,
performed best during the period when interest rates were stable or rising.
Looking ahead, our plan is to continue to improve the structure of the fund's
investment holdings. Specific emphasis will be on achieving a better balance
between maximizing the fund's tax-exempt income-generation potential on the one
hand, while positioning it to participate more fully during market rallies on
the other. Pursuing a better balance recognizes that the fund's current
structure is strongly weighted in higher income-producing bonds, which might be
called away in the next few years. Without a crystal ball to tell where interest
rates will be in the future, we believe it is prudent to begin selling some of
these selected securities, and redeploy the proceeds into municipal bonds with
better call protection. It is expected that the fund will benefit in two ways:
first, any future adverse impact on dividends now should be minimized. Second,
by shifting assets into better-structured securities, the fund will be
positioned to participate more fully in the market's potential price
appreciation should interest rates decline.
Looking ahead, we feel that the fund should be in a much better position to
meet the objectives of our shareholders. As always, we emphasize safeguarding
the assets which you have entrusted to us, while looking for positive investment
opportunities in the municipal marketplace. We trust that you agree with our
approach.
Very truly yours,
[signature logo, Richard J. Moynihan]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
March 18, 1999
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.
GENERAL MUNICIPAL BOND FUND, INC. FEBRUARY 28, 1999
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN GENERAL MUNICIPAL BOND
FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
$21,991
Lehman Brothers Municipal Bond Index*
Dollars
$21,591
General Municipal Bond Fund, Inc.
*Source: Lehman Brothers
Average Annual Total Returns
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
One Year Ended Five Years Ended Ten Years Ended
February 28, 1999 February 28, 1999 February 28, 1999
____________________ ____________________ __________________________
<S> <C> <C> <C>
4.47% 5.33% 8.00%
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in General Municipal Bond
Fund, Inc. on 2/28/89 to a $10,000 investment made in the Lehman Brothers
Municipal Bond Index on that date. All dividends and capital gain distributions
are reinvested.
The Fund invests primarily in municipal securities and its performance shown in
the line graph takes into account fees and expenses. The Lehman Brothers
Municipal Bond Index, unlike the Fund, is an unmanaged total return performance
benchmark for the long-term, investment-grade tax exempt bond market, calculated
by using municipal bonds selected to be representative of the municipal market
overall. The Index does not take into account charges, fees and other expenses,
which can contribute to the Index potentially outperforming or underperforming
the Fund. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS FEBRUARY 28, 1999
Principal
Long-Term Municipal Investments--101.5% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
Alabama--2.9%
Alabama Industrial Development Authority, SWDR (Pine City Fiber Co.)
6.45%, 12/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000,000 $ 12,665,520
Courtland Industrial Development Authority, SWDR
(Champion International Corp. Project) 6.375%, 3/1/2029 . . . . . . . . . . . . . . . . 4,000,000 4,231,880
California--8.6%
Alemeda Corridor Transportation Authority, Revenue 4.75%, 10/1/2025 (Insured; MBIA). . . . 6,450,000 6,209,350
State of California, Refunding:
4.375%, 10/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,715,150
4.50%, 10/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,485,000 5,167,528
4.50%, 10/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,385,000 5,981,021
4.50%, 12/1/2021 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 6,531,490
California Pollution Control Financing Authority, PCR (San Diego Gas and
Electric Co.)
5.90%, 6/1/2014 (a,b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,355,000 8,135,163
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
Refunding 6%, 7/1/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 3,900,000 4,243,161
San Joaquin Hills Transportation Corridor, Toll Road Revenue, Refunding:
Zero Coupon, 1/15/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 1,503,240
Zero Coupon, 1/15/2031 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 24,000,000 4,619,520
Zero Coupon, 1/15/2032 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 13,690,000 2,502,395
Colorado--8.1%
Colorado Housing Finance Authority, Single Family Program 7.55%, 8/1/2023. . . . . . . . . 1,975,000 2,075,863
Denver City and County:
Airport System Revenue:
7.25%, 11/15/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,065,000 4,486,622
7.25%, 11/15/2012 (Prerefunded 11/15/2002) (c) . . . . . . . . . . . . . . . . . . . . 1,035,000 1,180,148
8.25%, 11/15/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,125,000 4,455,949
7.75%, 11/15/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,365,000 5,882,991
7.75%, 11/15/2021 (Prerefunded 11/15/2001)(c) . . . . . . . . . . . . . . . . . . . . 1,395,000 1,574,160
7.25%, 11/15/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,985,000 4,398,324
7.25%, 11/15/2023 (Prerefunded 11/15/2002)(c) . . . . . . . . . . . . . . . . . . . . 1,200,000 1,368,288
8.00%, 11/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,890,000 4,226,641
8.00%, 11/15/2025 (Prerefunded 11/15/2001)(c) . . . . . . . . . . . . . . . . . . . . 1,360,000 1,518,644
Special Facilities Airport Revenue (United Airlines Project) 6.875%, 10/1/2032 . . . . . 9,235,000 9,883,205
Lakewood, MFHR, Mortgage 6.70%, 10/1/2036 (Insured; FHA) . . . . . . . . . . . . . . . . . 5,000,000 5,418,050
Connecticut--1.1%
Connecticut Housing Finance Authority, Refunding (Housing Mortgage Finance
Program)
6%, 11/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,970,000 6,302,230
District of Columbia--1.6%
Washington Convention Center Authority, Dedicated Tax Revenue
4.75%, 10/1/2028 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,359,300
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1999
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Florida--8.1%
Florida Board of Education, Refunding:
4.50%, 6/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,795,000 $ 7,357,467
4.50%, 6/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,930,000 5,565,364
Gulf Breeze, Revenue 4.50%, 10/1/2027 (Insured; MBIA). . . . . . . . . . . . . . . . . . . 11,380,000 10,510,568
Palm Beach County, Solid Waste IDR (Osceola Power Ltd. Partnership)
6.95%, 1/1/2022 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,340,000
Pinellas County Housing Facilities Authority, SFMR (Multi-County Program)
6.70%, 2/1/2028 (Guaranteed: FNMA, GNMA) . . . . . . . . . . . . . . . . . . . . . . . . 5,920,000 6,360,862
Polk County Industrial Development Authority, IDR 7.525%, 1/1/2015 . . . . . . . . . . . . 13,840,000 14,693,790
Illinois--2.5%
Illinois Health Facilities Authority, Health Hospital and Nursing Home Revenue
(Residential Centers Inc.) 8.50%, 8/15/2016 . . . . . . . . . . . . . . . . . . . . . . 5,600,000 6,144,936
Village of Romeoville 8.375%, 1/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . 7,495,000 8,152,386
Indiana--.8%
Indiana State Development Finance Authority, Revenue Refunding
(Inland Steel Facilities) 5.75%, 10/1/2011 . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,717,350
Iowa--.7%
Iowa Finance Authority, Single Family Mortgage
6.10%, 1/1/2028 (Guaranteed: FNMA, GNMA) . . . . . . . . . . . . . . . . . . . . . . . . 3,945,000 4,178,189
Kentucky--5.4%
Kenton County Airport Board, Airport Revenue
(Special Facilities - Delta Airlines Project):
7.50%, 2/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,550,000 12,615,141
7.125%, 2/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,630,000 4,980,954
City of Mount Sterling, Revenue (Kentucky League of Cities Funding Trust Lease
Program) 6.10%, 3/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500,000 6,233,150
Pendleton County, Multi-County Lease Revenue (Kentucky Association of Counties
Leasing Trust Program) 6.40%, 3/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,991,920
Louisiana--2.0%
Louisiana Public Facilities Authority, HR
(Louisiana Association of Independent Colleges and Universities Facilities Loan
Program)
7%, 12/1/2017 (Prerefunded 12/1/2002) (c) . . . . . . . . . . . . . . . . . . . . . . . 6,195,000 6,999,359
Parish of Saint James, SWDR (Freeport-McMoRan Partnership Project)
7.70%, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,140,000 4,449,092
Maine--1.3%
Maine Finance Authority, SWDR (Boise Cascade Corp. Project) 7.90%, 6/1/2015. . . . . . . . 6,900,000 7,279,707
Maryland--2.1%
Maryland Community Development Administration, Department of Housing and
Community Development (Single Family Program) 6.55%, 4/1/2026 . . . . . . . . . . . . . 9,970,000 10,718,548
Montgomery County Housing Opportunities Commission, MFMR 7.375%, 7/1/2032. . . . . . . . . 1,405,000 1,463,799
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1999
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Massachusetts--2.6%
Massachusetts Health and Educational Facilities Authority, Revenue
(New England Deaconess Hospital Issue) 7.20%, 4/1/2022 (Prerefunded 4/1/2001) (c) . . . $ 5,070,000 $ 5,548,557
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt Project
10%, 3/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,280,440
Massachusetts Water Resource Authority, Water Revenue 4%, 12/1/2018 (Insured; MBIA). . . . 7,000,000 6,139,070
Michigan--7.8%
Detroit Downtown Development Authority, Tax Increment Revenue, Refunding
(Downtown Development Area Number 1 Projects) 4.75%, 7/1/2025 (Insured; MBIA) . . . . . 7,700,000 7,316,617
Michigan Hospital Finance Authority, HR, Refunding:
(Genesys Health System):
8.10%, 10/1/2013 (Prerefunded 10/1/2005) (c) . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,505,240
8.125%, 10/1/2021 (Prerefunded 10/1/2005) (c) . . . . . . . . . . . . . . . . . . . . 4,910,000 6,157,435
7.50%, 10/1/2027 (Prerefunded 10/1/2005) (c) . . . . . . . . . . . . . . . . . . . . . 8,000,000 9,621,920
Michigan Strategic Fund, SWDR, Refunding (Genesee Power Station Project)
7.50%, 1/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,535,080
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 5,568,100
Wayne Charter County, Special Airport Facilities Revenue
(Northwest Airlines Inc.) 6.75%, 12/1/2015 . . . . . . . . . . . . . . . . . . . . . . . 5,610,000 6,110,356
Minnesota--1.2%
Washington County Housing and Redevelopment Authority, Hospital Facility Revenue
(Healtheast Project) 5.50%, 11/15/2027 (Insured; ACA) . . . . . . . . . . . . . . . . . 7,000,000 7,032,410
New Hampshire--1.5%
New Hampshire Housing Finance Authority, Single Family Residential Mortgage:
7.75%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,975,000 5,270,366
7.70%, 7/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,145,000 3,259,635
New York--8.8%
New York City Transitional Finance Authority, Sales and Income Tax Revenue
4.50%, 11/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,567,450
New York State Dormitory Authority, Revenue:
(Mount Sinai School of Medicine) 5.15%, 7/1/2024 (Insured; MBIA) . . . . . . . . . . . . 4,000,000 4,129,240
(State University Educational Facilities):
7.50%, 5/15/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 3,194,100
4.75%, 5/15/2025 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,688,400
Refunding 4.75%, 5/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,765,500
New York State Local Government Assistance Corp., Sales Tax Revenue, Refunding:
5%, 4/1/2010 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250,000 4,485,195
5.25%, 4/1/2016 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,410,000 6,747,358
New York State Urban Development Corp., Lease Revenue, Refunding
(Correctional Capital Facilities) 5.25%, 1/1/2014 (Insured; FSA) . . . . . . . . . . . . 6,925,000 7,347,425
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1999
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
Triborough Bridge and Tunnel Authority, Highway Toll Revenues
5.50%, 1/1/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 $ 10,800,900
North Carolina--1.5%
Charlotte North Carolina Special Facilities, Airport and Marina Revenue
(Charlotte-Douglas International Airport) 5.60%, 7/1/2027 . . . . . . . . . . . . . . . 8,480,000 8,349,069
North Dakota--1.1%
North Dakota Housing Finance Agency, SFMR:
7.30%, 7/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,885,000 3,023,826
7.75%, 7/1/2024 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,260,000 3,436,366
Ohio--1.5%
Ohio Water Development Authority, Pollution Control Facilities Revenue,
Refunding (Cleveland Electric) 6.10%, 8/1/2020 . . . . . . . . . . . . . . . . . . . . . 8,500,000 8,610,755
Oklahoma--3.5%
McGee Creek Authority, Water Revenue 6%, 1/1/2013 (Insured; MBIA). . . . . . . . . . . . . 6,025,000 6,884,767
Trustees of the Tulsa Municipal Airport Trust, Revenue
(American Airlines Inc. Project) 7.60%, 12/1/2030 . . . . . . . . . . . . . . . . . . . 12,000,000 13,029,720
Pennsylvania--.7%
Lehigh County General Purpose Authority, Revenue (Wiley House)
9.50%, 11/1/2016 (Prerefunded 11/1/2001) (c) . . . . . . . . . . . . . . . . . . . . . . 3,500,000 4,099,305
Rhode Island--1.4%
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership E-1) 7.55%, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,305,000 4,546,597
(Rental Housing Program) 7.95%, 10/1/2020 . . . . . . . . . . . . . . . . . . . . . . . 3,195,000 3,326,091
South Carolina--3.2%
Piedmont Municipal Power Agency, Electric Revenue, Refunding
6.55%, 1/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,100,000 9,122,841
South Carolina Transportation Infrastructure Bank, Revenue
4.50%, 10/1/2016 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,525,800
Texas--13.7%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project) 7%, 12/1/2011 (Guaranteed; AMR Corp.) . . . . . . . . . 10,000,000 11,806,900
Austin, Multiple Utility Revenue, Refunding 4.25%, 5/15/2028 (Insured; MBIA) . . . . . . . 30,920,000 27,053,763
Dallas - Fort Worth International Airport Facility Improvement Corp., Revenue
(Delta Airlines Inc.):
7.625%, 11/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,403,610
7.125%, 11/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,305,450
Gulf Coast Waste Disposal Authority, SWDR (Champion International Corp. Project):
7.25%, 4/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,810,000 3,050,986
7.25%, 4/1/2017 (Prerefunded 4/1/2002) (c) . . . . . . . . . . . . . . . . . . . . . . . 1,925,000 2,151,188
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1999
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Texas (continued)
Harlandale Independent School District
4.50%, 8/15/2023 (Guaranteed; Permanent School Fund) . . . . . . . . . . . . . . . . . $ 10,685,000 $ 9,787,353
Houston, Airport System Revenue (Continental Airlines Project)
6.125% (Series C) 7/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,117,000
Matagorda County Navigation District Number 1, Industrial Revenue, Refunding
(Houston Lighting) 5.125%, 11/1/2018 (Insured; AMBAC) . . . . . . . . . . . . . . . . . 12,500,000 12,461,250
Utah--.8%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration Project) 9.25%, 7/1/2018 (d). . . . 8,000,000 4,801,600
Washington--5.6%
Central Puget Sound Regional Transit Authority, Sales Tax and Motor Vehicle
Excise Tax
Revenue 4.75%, 2/1/2028 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 6,585,950
Chelan County Public Utility District Number 1, Consolidated Revenue
(Chelan Hydroelectric) 7.50%, 7/1/2011 . . . . . . . . . . . . . . . . . . . . . . . . . 5,655,000 6,983,699
Washington Housing Finance Commission, Nonprofit Housing Revenue
(Seattle University Auxiliary Services Project) 5.30%, 7/1/2031 (LOC; Bank of America) . . 5,380,000 5,293,705
Washington Public Power Supply System, Revenue, Refunding
(Nuclear Project Number 3) 7.125%, 7/1/2016 (Insured; MBIA) . . . . . . . . . . . . . . 10,425,000 13,064,506
Wyoming--.8%
Wyoming Community Development Authority, Housing Revenue 6.25%, 6/1/2027 . . . . . . . . . 4,095,000 4,337,997
U.S. Related--.6%
Commonwealth of Puerto Rico, Public Improvement 5.25%, 7/1/2012. . . . . . . . . . . . . . 3,000,000 3,194,250
_____________
TOTAL INVESTMENTS (cost $556,009,525). . . . . . . . . . . . . . . . . . . . . . . . . . . 101.5% $583,813,553
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (1.5%) $ (8,601,024)
======= =============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $575,212,529
======= =============
</TABLE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
ACA American Capital Access LOC Letter of Credit
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
Insurance Corporation
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GNMA Government National Mortgage Association SFMR Single-Family Mortgage Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 41.2%
AA Aa AA 16.3
A A A 5.1
BBB Baa BBB 24.2
BB Ba BB 2.7
B B B .8
Not Rated (e) Not Rated (e) Not Rated (e) 9.7
_______
100.0%
=======
Notes to Statement of Investments:
</TABLE>
- -----------------------------------------------------------------------------
(a) Purchased on a delayed delivery basis.
(b) Inverse floater security--the interest rate is subject to change
periodically.
(c) 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.
(d) Non-income accruing security.
(e) 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.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1999
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $556,009,525 $583,813,553
Receivable for investment securities sold . . . . . . . . 17,116,660
Interest receivable . . . . . . . . . . . . . . . . . . . 8,960,786
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 26,087
______________
609,917,086
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 319,262
Due to Distributor . . . . . . . . . . . . . . . . . . . 22,851
Cash overdraft due to Custodian . . . . . . . . . . . . . 25,712,929
Payable for investment securities purchased . . . . . . . 8,248,409
Accrued expenses . . . . . . . . . . . . . . . . . . . . 401,106
______________
34,704,557
______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $575,212,529
==============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $542,495,097
Accumulated undistributed investment income--net . . . . 168,841
Accumulated net realized gain (loss) on investments . . . 4,744,563
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 27,804,028
______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $575,212,529
==============
SHARES OUTSTANDING
(150 MILLION SHARES OF $.01 PAR VALUE COMMON STOCK AUTHORIZED) . . . . . . . . . . . . . . 39,470,946
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $14.57
========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 28, 1999
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $ 37,339,707
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 3,477,251
Shareholder servicing costs--Note 3(b) . . . . . 1,686,998
Custodian fees . . . . . . . . . . . . . . . . . 61,224
Registration fees . . . . . . . . . . . . . . . . 55,897
Professional fees . . . . . . . . . . . . . . . . 51,120
Directors' fees and expenses--Note 3(c) . . . . . 48,231
Prospectus and shareholders' reports--Note 3(b) . 41,271
Loan commitment fees--Note 2 . . . . . . . . . . 3,944
Miscellaneous . . . . . . . . . . . . . . . . . . 25,463
_____________
Total Expenses . . . . . . . . . . . . . . 5,451,399
_____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,888,308
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 9,380,080
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . (12,086,075)
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . (2,705,995)
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $ 29,182,313
=============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
February 28, 1999 February 28, 1998
_________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,888,308 $ 36,722,507
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . 9,380,080 10,848,626
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . (12,086,075) 11,450,416
________________ ________________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 29,182,313 59,021,549
________________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,810,608) (36,631,366)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . (12,572,013) (837,108)
________________ ________________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44,382,621) (37,468,474)
________________ ________________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . 780,640,827 1,796,646,098
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,599,382 25,404,886
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . (875,342,703) (1,880,181,758)
________________ ________________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . (63,102,494) (58,130,774)
________________ ________________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . (78,302,802) (36,577,699)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653,515,331 690,093,030
________________ ________________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 575,212,529 $ 653,515,331
================ ================
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . $ 168,841 $ 91,141
________________ ________________
Shares Shares
________________ ________________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,769,098 123,506,929
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 2,136,104 1,727,793
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (59,140,024) (129,007,469)
________________ ________________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . (4,234,822) (3,772,747)
================ ================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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>
Fiscal Year Ended February,
____________________________________________________________
PER SHARE DATA: 1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $14.95 $14.53 $15.00 $14.45 $15.46
------ ------ ------ ------ ------
Investment Operations:
Investment income--net . . . . . . . . . . . . . .74 .77 .78 .82 .86
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . (.09) .44 (.21) .57 (.89)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS . . . . . . . . .65 1.21 .57 1.39 (.03)
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net . . . . . . (.74) (.77) (.78) (.82) (.86)
Dividends from net realized gain on investments . (.29) (.02) (.26) (.02) (.12)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS . . . . . . . . . . . . . . . (1.03) (.79) (1.04) (.84) (.98)
------ ------ ------ ------ ------
Net asset value, end of period . . . . . . . . . $14.57 $14.95 $14.53 $15.00 $14.45
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . 4.47% 8.52% 4.04% 9.79% .07%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . .86% .87% .88% .88% .87%
Ratio of net investment income
to average net assets . . . . . . . . . . . . 5.04% 5.23% 5.40% 5.50% 5.99%
Portfolio Turnover Rate . . . . . . . . . . . . 99.51% 91.37% 115.62% 114.78% 67.87%
Net Assets, end of period (000's Omitted) . . . $575,213 $653,515 $690,093 $867,157 $934,277
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 custody
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, if any, 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
February 28, 1999, the Fund did not borrow under the Facility.
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (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 February 28, 1999, 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 February 28, 1999, the
Fund was charged $1,273,713 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 February 28, 1999, the Fund was charged $276,862 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 shares
redeemed within fifteen days of their issuance, including on redemptions through
the use of the Fund Exchange privilege. During the period ended February 28,
1999, redemption fees retained by the Fund amounted to $31,482.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended February 28, 1999,
amounted to $610,451,405 and $640,427,119, respectively.
At February 28, 1999, accumulated net unrealized appreciation on investments
was $27,804,028, consisting of $33,660,402 gross unrealized appreciation and
$5,856,374 gross unrealized depreciation.
At February 28, 1999, 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 MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
General Municipal Bond Fund, Inc., including the statement of investments, as of
February 28, 1999, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of February 28, 1999 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
General Municipal Bond Fund, Inc. at February 28, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the indicated years, in conformity with generally accepted accounting
principles.
[ERNST & YOUNG LLP SIGNATURE LOGO]
New York, New York
March 30, 1999
GENERAL MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended February 28, 1999:
-- all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax), and
-- the Fund hereby designates $.0433 per share as a long-term capital gain
distribution of the $.1064 per share paid on December 8, 1998 and also
designates $.0740 per share as a long-term capital gain distribution of the
$.1802 per share paid on July 7, 1998.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends (if any) and capital
gain distributions (if any) paid for the 1999 calendar year on Form 1099-DIV
which will be mailed by January 31, 2000.
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. 106AR992
General Municipal
Bond Fund, Inc.
Annual Report
February 28, 1999
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN GENERAL MUNICIPAL BOND FUND, INC. AND THE
LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
LEHMAN
BROTHERS GENERAL
PERIOD MUNICIPAL MUNICIPAL
BOND INDEX * BOND FUND, INC.
2/28/89 10,000 10,000
2/28/90 11,026 11,097
2/28/91 12,042 12,101
2/29/92 13,245 13,594
2/28/93 15,068 15,786
2/28/94 15,902 16,655
2/28/95 16,202 16,667
2/29/96 17,991 18,304
2/28/97 18,982 19,044
2/28/98 20,717 20,666
2/28/99 21,991 21,591
*Source: Lehman Brothers
