GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of General Government Securities
Money Market Fund, Inc. for its fiscal year ended January 31, 1997 as shown
in the following table:
Annualized
Annualized Yield Effective Yield*
_________________ ___________________
Class A Shares 4.64% 4.74%
Class B Shares 4.47% 4.56%
ECONOMIC REVIEW
The release of a 4.7% estimate for the fourth quarter's real Gross
Domestic Product ("GDP") growth has restored an above-trend growth trajectory
to the U.S. economy. Hence, the much anticipated slowdown to a benign 2% path
is no longer a valid viewpoint. This has left the Federal Reserve Board (the
"Fed") with the policy decision of whether to act on its GDP growth
yardstick, or pursue a wait-and-see option with regard to inflation. The
economy is embarking on its seventh expansion year with good momentum.
Real GDP grew at an annualized 3.3% rate in the first half of 1996 and
3.4% in the second half. Key forces to sustain growth include steady income
growth that supports consumer spending, reviving economic growth abroad to
help exports (despite some offset from a higher dollar) and a lean inventory
situation that should keep manufacturing buoyant. However, capital goods
orders have slowed recently. Excess capacity still exists in some sectors,
while the higher dollar can especially hurt import-competing industries. The
stronger dollar additionally may hurt profits related to foreign sales,
although overall corporate profits should sustain steady growth.
While the Fed has held a bias favoring tighter policy since mid-1996, it
has so far delayed tightening. A slow economy in the summer months and, more
recently, the surging dollar have curbed inflation fears, giving ample reason
to leave policy unchanged. Indeed, accelerating wage inflation and high oil
prices have been accompanied by lower general price inflation in recent
months. However, while a rising dollar typically depresses prices in the
traded goods sector, the attendant boost to purchasing power risks higher
inflation pressures elsewhere.
MARKET OVERVIEW
The money market during the past year was characterized by considerable
volatility. However, by the end of this Fund's fiscal year, short-term rates
were actually little changed from when the year began.
Throughout the period, inflation and what, if anything, the Fed might do
about it, continued to be the major concern. Early in the year, rates
generally rose, especially after strong employment reports in late spring and
early summer convinced the market that the Fed would need to tighten money
rates in order to prevent a recurrence of inflation. By late summer, however,
it became clear that inflation was not an immediate threat. The Fed
acknowledged as much by taking no preemptive action. Furthermore, the economy
was a constructive influence, providing continued yet moderate growth without
exerting undue upward pressure on wage levels or general price indicators.
Thus, in the latter part of the year, interest rates simmered down, though
not without short-lived inflation scares.
As the time approached for the February 1997 meeting of the rate-setting
Federal Open Market Committee, the market was nervous but essentially
neutral, as rates edged slightly lower. The most significant recent
development has been a flattening of the yield curve, with rates on the
30-year Treasury bond narrowing the gap with short-term Treasury yields. As
it turned out, the Fed in early February left rates undisturbed. There has
been no rate change by the Fed since January 1996, when there was a modest
cut in the Federal Funds rate of 25 basis points.
In recent days, a new factor has entered the picture _ the decision by
the U.S. and the Group of Seven major industrial nations not to try to push
the U.S. dollar's valuation any higher. Eventually, this change in strategy
could affect the U.S. money market. The initial reaction in the markets,
however, was to take it in stride.
Some tightening of rates by the Fed is to be expected in coming months,
if the U.S. economy continues to exhibit strong growth. The rising dollar so
far has acted as a restraint on inflation. It remains to be seen what the
effect of the new dollar strategy will be on the market.
PORTFOLIO FOCUS
Our maturity structure has been geared to deal with changeable
eventualities while seeking superior yields. At times this has resulted in
average maturity longer than the industry average. We intend to continue this
approach until events in the marketplace dictate a change.
It is a pleasure and a privilege to serve your investment needs.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
February 18, 1997
New York, N.Y.
* Annualized effective yield takes into account the effect of compounding
and is based upon dividends declared daily and reinvested monthly.
<TABLE>
<CAPTION>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS JANUARY 31,1997
Annualized
Yield on
Date of Principal
U.S. Treasury Bills_4.8% Purchase Amount Value
____________ __________ ____________
<S> <C> <C> <C> <C> <C>
3/6/97 ................................................... 5.40% $ 10,000,000 $ 9,952,975
5/1/97 ................................................... 5.58 20,000,000 19,738,933
_____________
TOTAL U.S. TREASURY BILLS (cost $29,691,908)................... $ 29,691,908
===============
U.S. Government Agencies_94.6%
Federal Farm Credit Banks, Consolidated Systemwide Medium Term Notes
7/25/97.................................................... 5.33%(a) $ 15,000,000 $ 14,997,267
9/15/97.................................................... 5.38 (a) 15,000,000 14,995,655
Federal Home Loan Banks, Discount Notes
2/3/97..................................................... 5.48 100,000,000 99,969,556
2/7/97..................................................... 5.40 21,305,000 21,286,340
2/18/97.................................................... 5.37 10,000,000 9,975,303
2/19/97.................................................... 5.67 25,000,000 24,931,375
3/5/97..................................................... 5.23 15,000,000 15,000,000
3/6/97..................................................... 5.22 25,000,000 24,999,465
3/12/97.................................................... 5.47 25,000,000 24,855,917
6/27/97.................................................... 5.90 7,680,000 7,676,406
11/24/97................................................... 5.74 25,000,000 25,000,000
12/5/97.................................................... 5.49 3,590,000 3,430,497
1/22/98.................................................... 5.68 25,000,000 24,980,987
Federal Home Loan Banks, Floating Rate Notes
1/26/98.................................................... 5.49 (a) 4,000,000 4,003,503
Federal Home Loan Mortgage Corp., Discount Notes
2/24/97.................................................... 5.39 20,000,000 19,931,767
Federal National Mortgage Association, Discount Notes
3/17/97.................................................... 5.49 25,000,000 24,836,529
9/12/97.................................................... 5.56 20,000,000 19,344,629
11/6/97.................................................... 5.52 10,000,000 9,596,129
11/14/97................................................... 5.43 14,000,000 13,427,207
11/24/97................................................... 5.39 10,000,000 9,579,023
12/4/97.................................................... 5.46 15,000,000 14,339,550
Federal National Mortgage Association, Floating Rate Notes
3/14/97.................................................... 5.30 (a) 25,000,000 25,000,000
6/20/97.................................................... 5.46 (a) 20,000,000 19,999,290
7/25/97.................................................... 5.37 (a) 20,000,000 20,000,000
8/18/97.................................................... 5.38 (a) 30,000,000 29,997,563
11/21/97................................................... 5.36 (a) 45,000,000 44,982,517
1/21/98.................................................... 5.36 (a) 10,000,000 9,994,998
_____________
TOTAL U.S. GOVERNMENT AGENCIES (cost $577,131,473)............. $577,131,473
==============
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31,1997
Annualized
Yield on
Date of Principal
Repurchase Agreements_.5% Purchase Amount Value
__________ ____________ ____________
Goldman, Sachs & Co.
dated 1/31/97 , due 2/3/97 in the amount of
$2,786,160 (fully collateralized by
$2,995,000 U.S. Treasury Bills, due 1/8/98,
value $2,846,193)
(cost $2,785,000).......................................... 5.00% $ 2,785,000 $ 2,785,000
=============
TOTAL INVESTMENTS (cost $609,608,381)............... 99.9% $609,608,381
======= =============
CASH AND RECEIVABLES (NET).......................... .1% $ 427,439
======= =============
NET ASSETS ......................................... 100.0% $610,035,820
======= =============
Notes to Statement of Investments:
(a) The interest rate, which will change periodically, is based on the
bank's prime rate.
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1997
Cost Value
_____________ _____________
ASSETS: Investments in securities_See Statement of
.....Investments_Note 1(b) $609,608,381 $609,608,381
Interest receivable........................ 3,861,992
Prepaid expenses and other assets.......... 69,410
_______________
613,539,783
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 269,907
Due to Distributor......................... 133,374
Cash overdraft due to Custodian............ 2,903,988
Accrued expenses and other liabilities..... 196,694
_______________
3,503,963
_______________
NET ASSETS.................................................................. $610,035,820
===============
REPRESENTED BY: Paid-in capital............................ $610,117,553
Accumulated net realized gain (loss) on investments (81,733)
_______________
NET ASSETS.................................................................. $610,035,820
===============
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B
_______________ _______________
Net Assets.................................................................. $519,860,915 $90,174,905
Shares Outstanding.......................................................... 519,933,767 90,183,786
NET ASSET VALUE PER SHARE................................................... $1.00 $1.00
======= =======
See notes to financial statements.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $32,879,538
EXPENSES: Management fee_Note 2(a)................... $3,002,777
Distribution fees_Note 2(b)................ 1,201,111
Shareholder servicing costs_Note 2(c)...... 543,687
Registration fees.......................... 133,367
Custodian fees............................. 129,284
Professional fees.......................... 44,394
Directors' fees and expenses_Note 2(d)..... 36,549
Prospectus and shareholders' reports....... 18,092
Miscellaneous.............................. 16,682
____________
Total Expenses....................... 5,125,943
Less_reduction in shareholder servicing costs due to
undertaking_Note 2(c).................. (62,819)
____________
Net Expenses......................... 5,063,124
_______________
INVESTMENT INCOME_NET....................................................... 27,816,414
NET REALIZED GAIN (LOSS) ON INVESTMENTS_Note 1(b)........................... (67,319)
_______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $27,749,095
================
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
January 31, 1997 January 31, 1996
_______________ ________________
OPERATIONS:
Investment income_net.................................................. $ 27,816,414 $ 27,392,282
Net realized gain (loss) on investments................................ (67,319) (9,720)
_______________ ________________
Net Increase (Decrease) in Net Assets Resulting from Operations.... 27,749,095 27,382,562
_______________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares....................................................... (24,381,410) (27,390,125)
Class B shares....................................................... (3,435,004) (2,157)
_______________ ________________
Total Dividends.................................................... (27,816,414) (27,392,282)
_______________ ________________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares....................................................... 4,365,059,146 4,619,394,913
Class B shares....................................................... 318,478,705 97,286
Dividends reinvested:
Class A shares....................................................... 23,642,113 26,433,785
Class B shares....................................................... 3,417,531 2,087
Cost of shares redeemed:
Class A shares....................................................... (4,398,835,960) (4,629,110,398)
Class B shares....................................................... (231,770,578) (41,245)
_______________ ________________
Increase (Decrease) in Net Assets from Capital Stock Transactions.. 79,990,957 16,776,428
_______________ ________________
Total Increase (Decrease) in Net Assets.......................... 79,923,638 16,766,708
NET ASSETS:
Beginning of Period.................................................... 530,112,182 513,345,474
_______________ ________________
End of Period.......................................................... $ 610,035,820 $ 530,112,182
=============== =================
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class A Shares
______________________________________________________________________
Year Ended January 31,
______________________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
________ _______ _______ _______ _______
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
________ _______ _______ _______ _______
Investment Operations:
Investment income_net..................... .047 .052 .038 .027 .033
________ _______ _______ _______ _______
Distributions:
Dividends from investment income_net........ (.047) (.052) (.038) (.027) (.033)
________ _______ _______ _______ _______
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN........................ 4.75% 5.35% 3.90% 2.69% 3.36%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .82% .84% .83% .81% .82%
Ratio of net investment income
to average net assets................. 4.65% 5.22% 3.82% 2.66% 3.28%
Net Assets, end of period (000's Omitted). $519,861 $530,054 $513,345 $536,884 $725,419
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class B Shares
_________________________
Year Ended January 31,
_________________________
PER SHARE DATA: 1997 1996(1)
________ ________
Net asset value, beginning of period.................................... $ 1.00 $ 1.00
________ ________
Investment Operations:
Investment income_net................................................... .045 .042
________ ________
Distributions:
Dividends from investment income_net.................................... (.045) (.042)
________ ________
Net asset value, end of period.......................................... $ 1.00 $ 1.00
======== ==========
TOTAL INVESTMENT RETURN..................................................... 4.58% 5.04%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. 1.00% 1.00%(2)
Ratio of net investment income
to average net assets................................................. 4.48% 5.01%(2)
Decrease reflected in above expense ratios
due to undertaking by the Manager..................................... .08% .10%(2)
Net Assets, end of period (000's Omitted)............................... $90,175 $58
(1) From March 31, 1995 (commencement of initial offering)
to January 31, 1996.
(2) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
General Government Securities Money Market Fund, Inc. (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a diversified
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income as is consistent
with the preservation of capital and the maintenance of liquidity. The
Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales load. The Fund is authorized to issue 16 billion shares of $.001 par
value Common Stock. The Fund currently offers two classes of shares: Class A
(15 billion shares authorized) and Class B (1 billion shares authorized).
Class A shares and Class B shares are identical except for the services
offered to and the expenses borne by each class and certain voting rights.
Class A shares are subject to a Service Plan adopted pursuant to Rule 12b-1
under the Act, Class B shares are subject to a Distribution Plan adopted
pursuant to Rule 12b-1 under the Act and, in addition, Class B shares are
charged directly for sub-accounting services provided by Service Agents (a
securities dealer, financial institution or other industry professional) at
an annual rate of .05 of 1% of the value of the average daily net assets of
Class B.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodians and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income-net on each business day. Such dividends are
paid monthly. Dividends from net realized capital gain, if any, are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Revenue Code, and to make distributions of taxable income sufficient to
relieve it from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $83,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 1997. The
carryover does not include net realized securities losses from November 1,
1996 through January 31, 1997 which are treated, for Federal income tax
purposes, as arising in fiscal 1998. If not applied, $20,000 of the carryover
expires in fiscal 2004 and $63,000 of the carryover expires in fiscal 2005.
At January 31, 1997, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
NOTE 2_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .50 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed 11\2% of the value of the average net assets, the Fund may
deduct from payments to be made to the Manager, or the Manager will bear such
excess expense. There was no expense reimbursement during the period ended
January 31, 1997 pursuant to the Agreement.
(B) Under the Service Plan with respect to Class A shares (the "Plan"),
adopted pursuant to Rule 12b-1 under the Act, the Fund directly bears the
costs of preparing, printing and distributing prospectuses and statements of
additional information and implementing and operating the Plan. In addition,
the Fund reimburses (a) the Distributor for payments made for distributing
Class A shares and servicing shareholder accounts ("Servicing") and (b) the
Manager, Dreyfus Service Corporation, a wholly-owned subsidiary of the
Manager, and their affiliates (collectively "Dreyfus") for payments made for
Servicing, at an aggregate annual rate of up to .20 of 1% of the value of the
average daily net assets of Class A. Both the Distributor and Dreyfus may pay
Service Agents a fee in respect of Class A shares owned by shareholders with
whom the Service Agent has a Servicing relationship or for whom the Service
Agent is the dealer or holder of record. The schedule of such fees and the
basis upon which such fees will be paid shall be determined from time to time
by the Fund's Board of Directors. If a holder of Class A shares ceases to be
a client of a Service Agent, but continues to hold Class A shares, Dreyfus
will be permitted to act as a Service Agent in respect of such Fund
shareholders and receive payments under the Service Plan for Servicing. The
fees payable for Servicing are payable without regard to actual expenses
incurred. During the period ended January 31, 1997, $1,047,607 was charged to
the Fund pursuant to the Plan.
Under the Distribution Plan with respect to Class B shares ("Class B
Distribution Plan"), adopted pursuant to Rule 12b-1 under the Act, the Fund
directly bears the costs of preparing, printing and distributing prospectuses
and statements of additional information and of implementing and operating
the Class B Distribution Plan. In addition, the Fund reimburses the
Distributor for payments made to third parties for distributing Class B
shares at an aggregate annual rate of up to .20 of 1% of the value of the
average daily net assets of Class B. During the period ended January 31,
1997, $153,504 was charged to the Fund pursuant to the Class B Distribution
Plan.
(C) Under the Fund's Shareholder Services Plan with respect to Class A
shares ("Class A Shareholder Services Plan"), the Fund reimburses Dreyfus
Service Corporation an amount not to exceed an annual rate of .25 of 1% of
the value of the average daily net assets of Class A for certain allocated
expenses of providing personal services and/or maintaining shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the maintenance of shareholder accounts. During the period ended January 31,
1997, the Fund was charged an aggregate of $215,006 pursuant to the Class A
Shareholder Services Plan.
Under the Fund's Shareholder Services Plan with respect to Class B shares
("Class B Shareholder Services Plan"), the Fund pays the Distributor for the
provision of certain services to the holders of Class B shares a fee at an
annual rate of .25 of 1% of the value of the average daily net assets of
Class B. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents.
The Manager has undertaken, through March 31, 1997, that if the aggregate
expenses of Class B of the Fund (exclusive of certain expenses as described
above) exceed 1% of the value of the average daily net assets of Class B, the
Manager will reimburse the expenses of the Fund under the Class B Shareholder
Services Plan to the extent of any excess expense and up to the full fee
payable under the Class B Shareholder Services Plan. During the period ended
January 31, 1997, $191,880 was charged to the Fund pursuant to the Class B
Shareholder Services Plan, of which $62,819 was reimbursed by the Manager.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement, for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $58,897 during the period ended January 31, 1997.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
We have audited the accompanying statement of assets and liabilities of
General Government Securities Money Market Fund, Inc., including the
statement of investments, as of January 31, 1997, 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 January 31, 1997 by correspondence
with the custodians 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 Government Securities Money Market Fund, Inc., at January
31, 1997, 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 3, 1997
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
IMPORTANT TAX INFORMATION
For State individual income tax purposes, the Fund hereby designates
48.69% of the ordinary income dividends paid during the fiscal year ended
January 31, 1997 as attributable to interest income from direct obligations
of the United States. Such dividends are currently exempt from taxation for
income tax purposes in most states, including New York, California and the
District of Columbia.
[Dreyfus lion "d" logo]
Registration Mark
GENERAL GOVERNMENT SECURITIES
MONEY MARKET FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 975/698AR971
[Dreyfus logo]
Registration Mark
General Government
Securities
Money Market
Fund, Inc.
Annual Report
January 31, 1997
