(reg.tm)
(reg.tm)
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. 975/698SA985
General Government
Securities Money
Market Fund, Inc.
Semi-Annual Report
May 31, 1998
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for General Government Securities
Money Market Fund for the six-month period ended May 31, 1998, as shown in the
following table:
ANNUALIZED
ANNUALIZED YIELD EFFECTIVE YIELD*
________________ ________________
Class A Shares 4.84% 4.95%
Class B Shares 4.64% 4.74%
The Economy
Although real Gross Domestic Product (GDP) sustained a growth trend
approaching 4% into the first quarter, recent evidence suggests a shift to
somewhat slower economic growth in coming months. Aggregate profit margins
already have begun to narrow in some sectors. The conflicting pressures of a
softening economy dampened by the Asian financial crisis and a tightening labor
market have kept the Federal Reserve Board (the "Fed") in neutral, although a
bias towards higher rates was reinstated at the March 1998 meeting of the
Federal Open Market Committee (the policy-making arm of the Fed). Market
interest rates have likewise stayed within a narrow range in recent months.
While manufacturing has turned appreciably sluggish since year end, this was
overshadowed in the first quarter by a strong rebound in domestic demand. The
industrial sector has been slowed by the strong dollar and by weak exports.
However, with Asian economies still in turmoil, competition from Asian-made
imports has emerged slowly. The first quarter rebound in domestic demand was
fueled primarily by strong housing market conditions and rising real household
incomes.
Rising real wages that have been such a boon to consumers in recent months may
take a toll on corporate profit margins. The first sign of profit pressure was
seen last year as the dollar strengthened. This year, profit margins have eroded
further due to weak exports and falling prices in some sectors. Accelerating
wage growth alongside limited pricing power may also prove a harbinger of profit
margin erosion. Hence, a shift to slower economic growth that coexists with
rising wage pressures creates a further risk to overall profit growth.
The above pressures have kept Fed policy unchanged until now. However, it
appears that policymakers are more concerned about wage growth than about
economic strains, as evidenced by a recent shift towards a tightening bias.
Although long-term bond yields were below year-ago levels at the end of May,
substantially lower yields have proven difficult to attain in the absence of
lower short-term rates. This too could restrain the economic growth rate.
The Market Environment
For the past six months, expectations for short-term interest rates have
fluctuated between the need for an increase in the Federal Funds rate in order
to cool off an overheating economy, and for an ease in order to offset the
Asian-crisis-triggered slowdown. Government securities are currently in a narrow
band and likely to remain there until a clear trend develops.
As the economy continues into its seventh year of expansion, the short-term
money markets are also on the lookout for signs that the economic cycle is
coming to an end. With unemployment at historic lows, the market is on alert for
a labor shortage-inspired pickup in inflation. To date, there has been no
evidence of such an occurrence.
Another development that gives many market participants concern is the
increasing talk of an "asset bubble." The short-term market is apprehensive that
Federal Reserve chairman Alan Greenspan, concerned over the effects of the
dramatic rise in stock prices, will raise short-term rates in an attempt to head
off the speculative excesses that might derail the economy.
With economic releases providing an often contradictory picture of the
economy, the financial markets are especially sensitive to comments from Federal
Reserve members. Recent speeches suggest that the Fed is concerned about the
possibility of re-emerging inflationary pressures, yet is prepared to wait until
a more definitive picture develops before altering monetary policy.
Portfolio Focus
In this market environment, we continue to maintain an average maturity for
the Fund which is somewhat longer than the industry average. We feel that this
strategy has been beneficial to the Fund, and we currently intend to maintain
that posture as long as we believe it corresponds with market conditions. Of
course, we will look to adapt our approach should new factors in the market
cause us to believe that such action is desirable.
Sincerely,
Patricia A. Larkin
Senior Portfolio Manager
June 18, 1998
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 MAY 31, 1998 (UNAUDITED)
Annualized
Yield on
Date of Principal
U.S. Treasury Notes--1.6% Purchase Amount Value
- --------------------------------------------------------------------------- ____________ _____________ _____________
<S> <C> <C> <C>
5.875% 10/31/98
(cost $15,017,593).................................................. 5.37% $ 15,000,000 $ 15,017,593
_____________
_____________
U.S. Government Agencies--97.2%
- ----------------------------------------------
Federal Farm Credit Bank, Consolidated Systemwide Discount Notes
11/24/98................................................................ 5.69% $24,000,000 $23,365,227
3/2/99.................................................................. 5.56 50,000,000 49,944,149
3/5/99.................................................................. 5.54 10,000,000 9,596,042
Federal Farm Credit Bank, Consolidated Systemwide Floating Rate Notes
2/22/99................................................................. 5.54 (a) 50,000,000 49,982,282
1/28/00................................................................. 5.57 (a) 50,000,000 50,000,000
2/9/00.................................................................. 5.55 (a) 25,000,000 24,991,958
3/17/00................................................................. 5.55 (a) 50,000,000 49,983,155
Federal Home Loan Banks, Discount Notes
6/1/98.................................................................. 5.45 9,726,000 9,726,000
6/5/98.................................................................. 5.72 50,000,000 49,969,083
6/8/98.................................................................. 5.60 17,338,000 17,319,863
6/19/98................................................................. 5.62 10,440,000 10,411,864
7/9/98.................................................................. 5.36 8,500,000 8,453,165
7/27/98................................................................. 5.62 25,000,000 24,790,389
9/24/98................................................................. 5.72 15,000,000 14,998,052
12/11/98................................................................ 5.65 15,000,000 14,568,967
1/29/99................................................................. 5.42 15,618,000 15,078,363
3/23/99................................................................. 5.58 25,000,000 24,984,442
Federal Home Loan Banks, Notes
4/23/99................................................................. 5.61 25,000,000 25,003,489
Federal National Mortgage Association, Discount Notes
6/18/98................................................................. 5.67 50,000,000 50,001,154
7/10/98................................................................. 5.70 10,000,000 9,993,905
7/31/98................................................................. 5.61 25,000,000 24,997,944
8/3/98.................................................................. 5.70 30,000,000 29,716,500
Federal National Mortgage Association, Floating Rate Notes
9/15/98................................................................. 5.58 (a) 75,000,000 74,982,943
4/15/99................................................................. 5.53 (a) 100,000,000 99,948,946
10/20/99................................................................ 5.52 (a) 25,000,000 25,000,000
12/1/99................................................................. 5.58 (a) 50,000,000 50,000,000
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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STATEMENT OF INVESTMENTS (continued) MAY 31, 1998 (UNAUDITED)
Annualized
Yield on
Date of Principal
U.S Government Agencies (continued) Purchase Amount Value
- --------------------------------------------------------------------------- ____________ _____________ _____________
Student Loan Marketing Association, Discount Notes
6/30/98................................................................. 5.60% $ 25,000,000 $ 24,891,250
Student Loan Marketing Association, Notes
2/10/99................................................................. 5.47 25,120,000 25,083,076
_____________
TOTAL U.S. GOVERNMENT AGENCIES (cost $887,782,208)......................... $887,782,208
_____________
_____________
TOTAL INVESTMENTS (cost $902,799,801)............................ 98.8% $902,799,801
====== =============
CASH AND RECEIVABLES (NET)....................................... 1.2% $ 10,369,036
====== =============
NET ASSETS....................................................... 100.0% $913,168,837
====== =============
Notes to Statement of Investments:
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(a) The interest rate, which will change periodically, is based on the bank's
prime rate.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1998 (UNAUDITED)
Cost Value
________________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments....... $902,799,801 $902,799,801
Cash.......................................................... 3,870,149
Interest receivable........................................... 7,236,311
Prepaid expenses and other assets............................. 66,051
_____________
913,972,312
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates................. 541,300
Due to Distributor............................................ 115,302
Accrued expenses.............................................. 146,873
_____________
803,475
_____________
NET ASSETS..................................................................................... $913,168,837
_____________
_____________
REPRESENTED BY: Paid-in capital............................................... $913,340,411
Accumulated net realized gain (loss) on investments........... (171,574)
_____________
NET ASSETS..................................................................................... $913,168,837
=============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B
______________ _____________
<S> <C> <C>
Net Assets..................................................................................... $519,098,447 $394,070,390
Shares Outstanding............................................................................. 519,234,918 394,105,494
NET ASSET VALUE PER SHARE...................................................................... $1.00 $1.00
===== =====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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STATEMENT OF OPERATIONS SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income.................................................... $25,665,191
EXPENSES: Management fee--Note 2(a).......................................... $ 2,279,768
Distribution fees (Class B)--Note 2(b)............................. 911,907
Shareholder servicing costs--Note 2(c)............................. 694,862
Registration fees.................................................. 77,625
Custodian fees..................................................... 46,992
Directors' fees and expenses--Note 2(d)............................ 17,885
Professional fees.................................................. 14,456
Prospectus and shareholders' reports............................... 12,357
____________
Total Expenses.............................................. 4,055,852
Less--reduction in shareholder servicing costs due to
undertaking--Note 2(c)......................................... (90,131)
____________
Net Expenses................................................ 3,965,721
____________
INVESTMENT INCOME--NET......................................................................... 21,699,470
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b).............................. (3,641)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................... $21,695,829
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31,1998 Ten Months Ended Year Ended
(Unaudited) November 30, 1997* January 31, 1997
__________________ __________________ __________________
<S> <C> <C> <C>
OPERATIONS:
Investment income--net.................................... $ 21,699,470 $ 31,426,952 $ 27,816,414
Net realized gain (loss) on investments................... (3,641) (86,200) (67,319)
_______________ _______________ _______________
Net Increase (Decrease) in Net Assets Resulting
from Operations.................................... 21,695,829 31,340,752 27,749,095
_______________ _______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares.......................................... (12,681,580) (20,661,515) (24,381,410)
Class B shares.......................................... (9,017,890) (10,765,437) (3,435,004)
_______________ _______________ _______________
Total Dividends...................................... (21,699,470) (31,426,952) (27,816,414)
_______________ _______________ _______________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.......................................... 2,353,493,947 3,630,662,665 4,365,059,146
Class B shares.......................................... 822,248,569 1,175,920,736 318,478,705
Dividends reinvested:
Class A shares.......................................... 12,386,548 20,330,225 23,642,113
Class B shares.......................................... 8,653,687 10,538,441 3,417,531
Cost of shares redeemed:
Class A shares.......................................... (2,357,069,262) (3,660,502,972) (4,398,835,960)
Class B shares.......................................... (801,675,694) (911,764,032) (231,770,578)
_______________ _______________ _______________
Increase (Decrease) in Net Assets from............... 38,037,795 265,185,063 79,990,957
_______________ _______________ _______________
Capital Stock Transactions
Total Increase (Decrease) in Net Assets......... 38,034,154 265,098,863 79,923,638
NET ASSETS:
Beginning of Period....................................... 875,134,683 610,035,820 530,112,182
_______________ _______________ _______________
End of Period............................................. $ 913,168,837 $ 875,134,683 $ 610,035,820
_______________ _______________ _______________
_______________ _______________ _______________
- -----------------------------
* The Fund changed its fiscal year end from January 31 to November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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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>
Class A Shares
_____________________________________________________________________________________
_____________________
Six Months Ended Ten Months Ended
May 31, 1998 November 30, Year Ended January 31,
_____________________________________________
PER SHARE DATA: (Unaudited) 1997(1) 1997 1996 1995 1994
_______________ ________________ ________ ________ ________ _________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________ __________ _________ _________ _________ __________
Investment Operations:
Investment income--net.................... .024 .040 .047 .052 .038 .027
_________ __________ _________ _________ __________ __________
Distributions:
Dividends from investment income--net..... (.024) (.040) (.047) (.052) (.038) (.027)
_________ __________ __________ _________ ___________ __________
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= ========== ========== =========
TOTAL INVESTMENT RETURN...................... 4.89%(2) 4.84%(2) 4.75% 5.35% 3.90% 2.69%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... .77%(2) .82%(2) .82% .84% .83% .81%
Ratio of net investment income
to average net assets................. 4.85%(2) 4.78%(2) 4.65% 5.22% 3.82% 2.66%
Net Assets, end of period (000's Omitted). $519,098 $510,289 $519,861 $530,054 $513,345 $536,884
- -----------------------------
(1) The Fund changed its fiscal year end from January 31 to November 30.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
</TABLE>
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.
<TABLE>
<CAPTION>
Class B Shares
_________________________________________________________________________
Six Months Ended
May 31, 1998 Ten Months Ended Year Ended January 31,
_______________________
PER SHARE DATA: (Unaudited) November 30, 1997(1) 1997 1996(2)
________________ ___________________ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
Investment Operations:
Investment income--net.............................. .023 .038 .045 .042
_________ ________ _______ _______
Distributions:
Dividends from investment income--net............... (.023) (.038) (.045) (.042)
_________ ________ _______ _______
Net asset value, end of period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======= ========
TOTAL INVESTMENT RETURN................................ 4.69%(3) 4.69%(3) 4.58% 5.04%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............. 1.00%(3) 1.00%(3) 1.00% 1.00%(3)
Ratio of net investment income
to average net assets........................... 4.64%(3) 4.60%(3) 4.48% 5.01%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.............. .05%(3) .05%(3) .08% .10%(3)
Net Assets, end of period (000's Omitted)........... $394,070 $364,845 $90,175 $58
- -----------------------------
(1) The Fund changed its fiscal year end from January 31 to November 30.
(2) From March 31, 1995 (commencement of initial offering) to January 31, 1996.
(3) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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") is the distributor of
the Fund' s shares, which are sold to the public without a sales load. The Fund
is authorized to issue 16 billion shares of $.001 par value Common Stock. The
Fund currently offers two classes of shares: Class A (15 billion shares
authorized) and Class B (1 billion shares authorized). Class A shares and Class
B shares are identical except for the services offered to and the expenses borne
by each class and certain voting rights. Class A shares are subject to a Service
Plan adopted pursuant to Rule 12b-1 under the Act, Class B shares are subject to
a Distribution Plan adopted pursuant to Rule 12b-1 under the Act and, in
addition, Class B shares are charged directly for sub-accounting services
provided by Service Agents (a securities dealer, financial institution or other
industry professional) at an annual rate of .05% of the value of the average
daily net assets of Class B shares.
It is the Fund's policy to maintain a continuous net asset value per share of
$1.00; the Fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the Fund will be able to maintain a stable net asset value per share of
$1.00.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities 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.
Under the terms of the custodian agreement, the Fund received net earnings
credits of $19,981 during the period ended May 31, 1998 based on available cash
balances left on deposit. Income earned under this arrangement is included in
interest income.
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 custodian 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
<PAGE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 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 expires in fiscal 2005.
At May 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).
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 1
1/2% of the value of the Fund's average net assets, the Fund may deduct from
payments to be made to the Manager, or the Manager will bear such excess
expense. During the period ended May 31, 1998, there was no expense
reimbursement 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, Class A shares directly bear the
costs of preparing, printing and distributing prospectuses and statements of
additional information and implementing and of operating the Plan. In addition,
Class A shares reimburse (a) the Distributor for payments made for distributing
their 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
<PAGE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 May 31, 1998, Class A shares were charged $523,393, 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, Class B
shares directly bear 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, Class B shares reimburse
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 May 31, 1998, Class
B shares were charged $388,514 pursuant to the Class B Distribution Plan.
(C) Under the Fund's Shareholder Services Plan with respect to Class A ("Class
A Shareholder Services Plan" ), Class A shares reimburse 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 the maintenance
of shareholder accounts. During the period ended May 31, 1998, Class A shares
were charged $29,181, pursuant to the Class A Shareholder Services Plan.
Under the Fund's Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan" ), Class B shares pay 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 Class B shares 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 from December 1, 1997 through May 31, 1998, that if
the aggregate expenses of Class B shares, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceed 1% of the value of the
average daily net assets of Class B, the Manager will reimburse the expenses of
the Fund under the Class B Shareholder Services Plan to the extent of any excess
expense and up to the full fee payable under the Class B Shareholder Services
Plan. During the period ended May 31, 1998, Class B shares were charged
$582,771, pursuant to the Class B Shareholder Services Plan, of which $90,131
was reimbursed by the Manager.
<PAGE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 May 31, 1998, the Fund was charged $000, pursuant to the transfer agency
agreement.
(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.
