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 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, Inc. for the 12-month period ended November 30, 1998, as
shown in the following table:
YIELD EFFECTIVE YIELD*
_______ _____________
Class A Shares . . . . . . . . . .. . . 4.77% 4.88%
Class B Shares . . . . . . . . . .. . . 4.57% 4.66%
Economic Review
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year. The U.S. economy cooled enough over the months that the Fed decided to
stand pat. Evidence of economic cooling continued to accumulate and worries
about the world economy intensified. Financial stresses pushed the Fed to ease
beginning in September. After many years of subpar economic growth, continental
Europe moved into a sustained economic expansion. The overall European economy
benefited as interest rates in peripheral countries such as Spain and Italy
fell, approaching the lower level established by Germany, on the eve of currency
unification. Unlike the U.S., Europe has substantial excess capacity of
productive plants and labor. In Asia, weak economies were pervasive as a result
of the Asian financial crisis. The Latin American economies weakened as the
financial stresses spread throughout that region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The drop
in inflation helped the consumer sector as more of the growth in consumer income
was left over after inflation to buy goods and services. Consumers benefited
from a combination of good growth in real income, a strong labor market and past
increases in the prices of assets they owned.
The negative effect of Asian weakness was felt in the industrial sector more
than the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports. One result of the industrial weakness was to cool off a U.S.
economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for
commodity-exporting countries throughout the world. The effect on Europe and the
U.S. has been to lower expectations of profit growth and drive down bond yields.
Monetary policy has begun to ease in Europe as well as the U.S.
Evidence of a weaker world economy accumulated as the financial stresses
continued. A worsened financial crisis occurred between the Russian default in
mid-August and the fallout from the Long-Term Capital Management hedge fund
crisis through early October. However, proactive steps were taken to stabilize
the Japanese banks, design a support package for Brazil and ease monetary
policy. There appears to be a shift in the priorities of key policymakers from
fighting potential inflation to restimulating future world economic growth.
Market Environment/Portfolio Focus
The economic forces described above drove down interest rates in late summer
and early fall. While there has been a recent modest increase, rates have now
broken out of the narrow band that prevailed earlier in the year.
The flight to safety that was prompted by economic worries around the globe
generated very high demand for U.S. Treasury securities in the longer
maturities. This drove down yields but money market rates remained strong,
causing an inverted yield curve for a while.
In recent weeks, investors appeared to become more confident with the economic
outlook. The result was an unwinding of large portions of the positions taken as
a result of the search for investment safety. Consequently, the yield curve,
which measures the relationship between long- and short-term securities,
returned to a more positive or more normal pattern.
At present, prices and rates in the money market are more reflective of
underlying economic forces than of investor fears of global financial turmoil.
This of course, is constructive for investors in short-term money market
instruments.
The fact that the Federal Reserve Open Market Committee lowered interest rates
three times since late September has been a strong confidence-building factor in
the markets. Currently, the market expects the Fed to continue its bias toward
accommodation as economic conditions dictate.
Taking all this into account, we continue to maintain a somewhat longer
average maturity than the average for other funds. This is intended to position
the Fund in the event of further downward moves in market yields.
Sincerely,
[Patricia A. Larkin signature]
Patricia A. Larkin
Senior Portfolio Manager
December 18, 1998
New York, N.Y.
* Effective yield takes into account the effect of compounding and is based upon
dividends declared daily and reinvested monthly.
<TABLE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS NOVEMBER 30, 1998
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--2.1% Purchase Amount Value
________ ______________ ______________
<S> <C> <C> <C>
___________________________________________________________________
2/25/99
(cost $24,733,639) . . . . . . . . . . . . . . . . . . . . . . . . . . 4.51% $ 25,000,000 $ 24,733,639
==============
U.S. Government Agencies--92.4%
___________________________________________________________________
Federal Farm Credit Bank, Consolidated Systemwide Discount Notes:
3/2/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.65% $ 50,000,000 $ 49,981,451
3/5/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.54 10,000,000 9,862,917
5/3/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.96 23,860,000 23,919,827
7/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50 25,000,000 24,990,910
11/8/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81 20,000,000 19,127,900
Federal Farm Credit Bank, Consolidated Systemwide Floating Rate Notes:
2/22/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.79(a) 50,000,000 49,994,472
6/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.79(a) 50,000,000 49,983,627
7/16/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.79(a) 25,000,000 24,990,671
9/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.67(a) 25,000,000 25,000,000
1/28/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.82(a) 50,000,000 50,000,000
2/9/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.80(a) 25,000,000 24,994,339
3/17/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.80(a) 50,000,000 49,987,861
Federal Home Loan Banks, Discount Notes:
12/11/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.65 15,000,000 14,977,667
1/29/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.42 15,618,000 15,486,436
2/19/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.47 50,000,000 49,408,889
3/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 25,000,000 24,994,093
4/14/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.71 50,000,000 49,143,889
6/11/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.63 25,000,000 24,989,611
7/6/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.45 25,000,000 24,991,527
7/9/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.48 9,650,000 9,342,165
7/13/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.59 25,000,000 24,992,420
Federal Home Loan Mortgage Corporation, Discount Notes:
2/16/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.74 50,000,000 49,500,568
2/24/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.24 25,000,000 24,697,482
Federal National Mortgage Association, Discount Notes:
3/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.30 20,000,000 19,741,500
3/9/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.96 21,000,000 20,722,170
5/10/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.91 25,000,000 24,470,000
8/13/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.86 25,000,000 24,169,479
8/20/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.45 17,000,000 16,360,356
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Annualized
Yield on
Date of Principal
U.S. Government Agencies (continued) Purchase Amount Value
________ ______________ ______________
___________________________________________________________________
Federal National Mortgage Association, Floating Rate Notes
4/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.78%(a) $ 100,000,000 $ 99,978,326
10/20/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.77(a) 25,000,000 25,000,000
12/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.83(a) 50,000,000 50,000,000
Student Loan Marketing Association, Notes
2/10/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.47 25,120,000 25,109,679
6/2/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.55 50,000,000 49,998,042
6/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.12 24,950,000 24,999,103
______________
TOTAL U.S. GOVERNMENT AGENCIES (cost $1,095,907,377) . . . . . . . . . . . $1,095,907,377
==============
Repurchase Agreements--4.3%
___________________________________________________________________
Barclays De Zoette Wedd Securities, Inc.
dated 11/30/98, due 12/1/98 in the amount of $4,575,565 (fully
collateralized by $4,595,000 U.S. Treasury Notes 5.75% to
6.375 %, due 5/15/99 to 9/30/99, value $4,648,564) . . . . . . . . . . 4.45% $ 4,575,000 $ 4,575,000
Goldman Sachs & Co.
dated 11/30/98, due 12/1/98 in the amount of $7,001,011
(fully collateralized by $6,945,000 U.S. Treasury Notes
7.75%, due 11/30/99, value $7,149,009) . . . . . . . . . . . . . . . . 5.20 7,000,000 7,000,000
SBC Warburg Dillon Read Inc.
dated 11/30/98, due 12/1/98 in the amount of $40,005,889
(fully collateralized by $41,718,000 U.S. Treasury Bills
due 5/27/99, value $40,807,296) . . . . . . . . . . . . . . . . . . . . 5.30 40,000,000 $ 40,000,000
==============
TOTAL REPURCHASE AGREEMENTS (cost $51,575,000) . . . . . . . . . . . . . . $ 51,575,000
==============
TOTAL INVESTMENTS (cost $1,172,216,016). . . . . . . . . . . . . . 98.8% $1,172,216,016
======== ==============
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . 1.2% $ 13,646,575
======== ==============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $1,185,862,591
======== ==============
Notes to Statement of Investments:
___________________________________________________________________
(a) Variable interest rate--subject to periodic change.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1998
Cost Value
_______________ _______________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of
Investments--Note 1(b) . . . . . . . . . . . . . . . . $1,172,216,016 $1,172,216,016
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 5,451,649
Interest receivable . . . . . . . . . . . . . . . . . . . 9,092,423
Prepaid expenses and other assets . . . . . . . . . . . . 78,157
_______________
1,186,838,245
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 672,918
Due to Distributor . . . . . . . . . . . . . . . . . . . 125,205
Accrued expenses . . . . . . . . . . . . . . . . . . . . 177,531
_______________
975,654
---------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,185,862,591
===============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $1,186,029,702
Accumulated net realized gain (loss) on investments . . . (167,111)
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,185,862,591
===============
NET ASSET VALUE PER SHARE
--------------------------------------------------
Class A Class B
_____________ _____________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $539,878,420 $645,984,171
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540,012,775 646,016,929
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.00 $1.00
====== ======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $56,682,802
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . $ 5,124,528
Distribution fees--Note 2(b) . . . . . . . . . . 2,049,811
Shareholder servicing costs--Note 2(c) . . . . . 1,652,767
Registration fees . . . . . . . . . . . . . . . . 137,573
Custodian fees . . . . . . . . . . . . . . . . . 91,606
Prospectus and shareholders' reports . . . . . . 36,549
Professional fees . . . . . . . . . . . . . . . . 34,700
Director's fees and expenses--Note 2(d) . . . . . 33,273
Miscellaneous . . . . . . . . . . . . . . . . . . 9,309
___________
Total Expenses . . . . . . . . . . . . 9,170,116
Less--reduction in shareholder servicing costs due to
undertaking--Note 2(c) . . . . . . . . . . . . (269,700)
___________
Net Expenses . . . . . . . . . . . . . 8,900,416
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,782,386
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . 822
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $47,783,208
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Ten Months Ended Year Ended
November 30, 1998 November 30, 1997* January 31, 1997
___________________ __________________ ________________
OPERATIONS:
<S> <C> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . $ 47,782,386 $ 31,426,952 $ 27,816,414
Net realized gain (loss) on investments . . . . . . . . . . 822 (86,200) (67,319)
________________ ________________ ________________
Net Increase (Decrease) in Net Assets Resulting
from Operations . . . . . . . . . . . . . . . . . 47,783,208 31,340,752 27,749,095
________________ ________________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A Shares . . . . . . . . . . . . . . . . . . . . (25,243,444) (20,661,515) (24,381,410)
Class B Shares . . . . . . . . . . . . . . . . . . . . (22,538,942) (10,765,437) (3,435,004)
________________ ________________ ________________
Total Dividends . . . . . . . . . . . . . . . . . . (47,782,386) (31,426,952) (27,816,414)
________________ ________________ ________________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A Shares . . . . . . . . . . . . . . . . . . . . 4,880,850,136 3,630,662,665 4,365,059,146
Class B Shares . . . . . . . . . . . . . . . . . . . . 1,928,335,745 1,175,920,736 318,478,705
Dividends reinvested:
Class A Shares . . . . . . . . . . . . . . . . . . . . 24,694,104 20,330,225 23,642,113
Class B Shares . . . . . . . . . . . . . . . . . . . . 21,778,602 10,538,441 3,417,531
Cost of shares redeemed:
Class A Shares . . . . . . . . . . . . . . . . . . . . (4,875,955,150) (3,660,502,972) (4,398,835,960)
Class B Shares . . . . . . . . . . . . . . . . . . . . (1,668,976,351) (911,764,032) (231,770,578)
________________ ________________ ________________
Increase (Decrease) in Net Assets from
Capital Stock Transactions . . . . . . . . . . . 310,727,086 265,185,063 79,990,957
________________ ________________ ________________
Total Increase (Decrease) in Net Assets . . . . . 310,727,908 265,098,863 79,923,638
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . 875,134,683 610,035,820 530,112,182
________________ ________________ ________________
End of Period . . . . . . . . . . . . . . . . . . . . . . . $ 1,185,862,591 $ 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>
<TABLE>
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 Ten Months Ended
November 30, November 30, Year Ended January 31,
___________________________________
PER SHARE DATA: 1998 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 . . . . . . . . . . . .048 .040 .047 .052 .038 .027
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . (.048) (.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. . . . . . . . . . . . . 4.88% 4.84%(2) 4.75% 5.35% 3.90% 2.69%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . .77% .82%(2) .82% .84% .83% .81%
Ratio of net investment income
to average net assets . . . . . . . . . . 4.77% 4.78%(2) 4.65% 5.22% 3.82% 2.66%
Net Assets, end of period (000's Omitted) . . $539,878 $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.
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 Ten Months Ended
November 30, November 30, Year Ended January 31,
________________________
PER SHARE DATA: 1998 1997(1) 1997 1996(2)
_____________ _________________ _______ _______
Net asset value, beginning of period . . $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Investment Operations:
Investment income--net . . . . . . . . . .046 .038 .045 .042
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . (.046) (.038) (.045) (.042)
_______ _______ _______ _______
Net asset value, end of period . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
TOTAL INVESTMENT RETURN. . . . . . . . . . . 4.66% 4.69%(3) 4.58% 5.04%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . .97% 1.00%(3) 1.00% 1.00%(3)
Ratio of net investment income
to average net assets . . . . . . . . 4.55% 4.60%(3) 4.48% 5.01%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager . .05% .05%(3) .08% .10%(3)
Net Assets, end of period (000's Omitted) . . $645,984 $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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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, as amended (the "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 (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
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 custody agreement, the Fund received net earnings credits
of $32,626, during the period ended November 30, 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 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 are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code of 1986,
as amended (the "Code"). To the extent that net realized capital gain can be
offset by capital loss carryovers, it is the policy of the Fund not to
distribute such gain.
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 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 $172,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1998. If not
applied, $19,000 of the carryover expires in fiscal 2003, $63,000 expires in
fiscal 2004 and $90,000 expires in fiscal 2005.
At November 30, 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 November 30, 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 Fund's
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 November 30, 1998, Class A shares were charged $1,058,316 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 November 30, 1998,
Class B shares were charged $991,495 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 Fund's average daily net assets of Class A for certain allocated expenses of
providing personal services and/or maintaining shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information.
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GENERAL GOVERNMENT SECURITIES MONEY
MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
and services related to the maintenance of shareholder accounts. During the
period ended November 30, 1998, Class A shares were charged $86,597 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 had undertaken from December 1, 1997 through November 30, 1998,
that if the aggregate expenses of Class B of the Fund, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceed 1% of the
value of the average daily net assets of Class B, the Manager will reimburse the
expenses of the Fund under the Class B Shareholder Services Plan to the extent
of any excess expense and up to the full fee payable under the Class B
Shareholder Services Plan. During the period ended November 30, 1998, Class B
shares were charged $1,400,646 pursuant to the Class B Shareholder Services
Plan, of which $269,700 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. During the period
ended November 30, 1998, the Fund was charged $74,485, 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.
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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 November 30, 1998, and the related statement of operations
for the year then ended, the statement of changes in net assets 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 November 30, 1998 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 Government Securities Money Market Fund, Inc., at November 30, 1998, and
the results of its operations for the year then ended, the changes in its net
assets 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
January 7, 1999
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Fund hereby designates 54.75% of
the ordinary income dividends paid during its fiscal year ended November 30,
1998 as attributable to interest income from direct obligations of the United
States. Such dividends are currently exempt from taxation for individual income
tax purposes in most states, including New York, California and the District of
Columbia.
[reg.tm logo]
(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. 975/698AR9811
General Government
Securities Money
Market Fund, Inc.
Annual Report
November 30, 1998
