GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General New York
Municipal Bond Fund, Inc. for the 12-month period ended October 31, 1997.
During this period, your Fund produced a total return, including share price
changes and dividend income generated, of 8.63%* and a tax-free distribution
rate per share of 4.84%.**
Economic Review
With the level of inflation at its lowest since 1964, and unemployment
still near a 23-year low, the economy continued its solid growth over the
reporting period. Gross Domestic Product (GDP) - the dollar total of all
goods and services produced in the United States - has grown in excess of 3%
for the past four quarters, a level and consistency of gain unmatched since
1984. This extraordinary economic performance has been fueled by huge
business investment in new plants and equipment as well as a renewed surge in
consumer spending over the summer. Consumers play a substantial role in
determining the course of the economy since their spending accounts for
two-thirds of all economic activity. Retail sales rose through the summer and
into September, although there was some sign of deceleration as the third
quarter progressed.
The big economic story continued to be the lack of inflation in an
economy now in its seventh year of expansion. This remarkable price
stability, at a time in the business cycle when inflationary pressures would
usually be apparent, has enabled the Federal Reserve Board (the "Fed") to
refrain from tightening monetary policy. The Federal Open Market Committee
(FOMC), the policy-making arm of the Fed, has raised interest rates just once
in over two years, a period roughly coinciding with the surge of growth in
the economy. The last increase in short-term interest rates came on March 25,
1997 when the FOMC increased the Federal Funds rate by a modest one-quarter
of a percentage point to 5.50%. (The Federal Funds rate is the rate of
interest that banks charge one another for overnight loans.)
Of course, the recent financial market turbulence arising from currency
devaluations in some of the economically weaker Southeast Asian countries has
added a cautionary note to any Fed monetary actions that might further roil
investment markets. The Southeast Asian economies have been cooling or in
outright recession for some time and represent a large share of the global
economy and the U.S. import/export market. The recent crisis has boosted the
value of the U.S. dollar and could further dampen the demand for U.S. exports
to this region. This bodes well for continued low inflation in the U.S. and
weakens the argument that we are on the brink of price acceleration.
In fact, inflation remains in check. The Implicit Price Deflator, an
indicator of inflation that measures the prices of all goods and services in
the U.S., has risen at an annual rate of less than 2% for the past two
quarters. This favorable trend in prices has been mirrored by both the
Consumer Price and Producer Price Indices. The Labor Department's Employment
Cost Index, a broad measure of changes in wages and benefits, has indicated
relatively modest increases in labor costs. Still, the labor market remains
tight, with the unemployment rate at a level unmatched in 23 years.
Whether the economy will slow without further monetary restraint by the
Fed remains an open question. Industrial production has been strong and
operating rates, an indicator of possible future price pressures, have edged
to their highest level in two years. Of paramount concern to Fed Chairman
Alan Greenspan is the possibility of continuing economic growth so strong
that the unemployment rate is driven even lower, and a subsequent
corresponding upsurge in wage rates reignites inflation. The performance of
the economy over the coming months appears crucial in determining whether the
Fed will actively restrain the economy. We remain alert to changes in
economic trends that would increase the risk of rising inflation and,
consequently, the prospect of higher interest rates.
Market Environment
Since our April semi-annual report, long-term taxable interest rates
have declined dramatically. As measured by the 30-year U.S. Treasury bond,
yields ended the period at 6.15%, down from roughly 7.0% just six months
earlier. In the municipal market the drop in rates was less pronounced as
the Bond Buyer Revenue Bond Index closed the period yielding 5.60% versus
6.01% on April 30. Initially, long-term interest rates were driven lower by
expectations that economic growth would slow during the summer. When that
did not materialize, disappointed bond market participants pushed yields
higher from the beginning of August through mid-September as tight labor
markets in the U.S. again became a source of concern. The implications of a
tight labor market were overshadowed during October by the development of
economic crises in various Asian countries which precipitated a significant
correction in the U.S. equity market.
The underperformance of municipal bonds during the reporting period was
driven by a combination of lack of retail demand at lower yields and a large
increase in issuance, as many bond refundings became economically feasible.
This weakening technical dynamic is illustrated by the municipal/Treasury
yield ratio (as measured by the Bond Buyer Revenue Bond Index/30-year
Treasury yield) cheapening from 86% on April 30, 1997 to 91% six months later.
Portfolio Overview
As discussed in our April report, the Fund had been managed with a
defensive bias until it was clear that the Fed tightening had been completed.
The Fund endeavors to provide an attractive yield and we maintain a core
position of high coupon paper to help meet that need. The municipal yield
curve has remained relatively flat during this reporting period. The
maturities of some holdings were shortened from the 30-year range with only
a modest reduction in yield, thereby reducing volatility. This afforded us
the flexibility to increase our position in paper with the potential for
capital appreciation without significantly extending the duration of the
Fund. The demand for high yield paper continues to be very strong in the
municipal market; nevertheless, we will continue to incorporate it into the
structure of the portfolio. New York issuance, which was limited during the
early part of the year, increased considerably during the 2nd and 3rd
quarters. The total return of 8.63% for the year ended October 31, compares
very favorably to the Lipper New York Municipal Average of 8.04% for the
same time period.
Included in this report are financial statements relating to your Fund;
we hope you find them informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 18, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid. Income is subject to state and local taxes for non-New York residents.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the net asset value per
share at the end of the period, adjusted for any capital gain distributions.
Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC. OCTOBER 31, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN GENERAL NEW YORK
MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
Dollars
$23,243
Lehman Brothers
Municipal Bond Index*
$21,264
General New York
Municipal Bond Fund
*Source: Lehman Brothers
<TABLE>
<CAPTION>
Average Annual Total Returns
One Year Ended Five Years Ended Ten Years Ended
October 31, 1997 October 31, 1997 October 31, 1997
----------------- ----------------- -----------------
<S> <C> <C>
8.63% 7.22% 7.84%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the General New York
Municipal Bond Fund, Inc. on 10/31/87 to a $10,000 investment made in the
Lehman Brothers Municipal Bond Index on that date. All dividends and capital
gain distributions are reinvested.
The Fund invests primarily in New York municipal securities and its
performance shown in the line graph takes into account fees and expenses.
Unlike the Fund, the Lehman Brothers Municipal Bond Index is an unmanaged
total return performance benchmark for the long-term, investment-grade,
geographically unrestricted tax exempt bond market, calculated by using
municipal bonds selected to be representative of the municipal market
overall. The Index does not take into account charges, fees and other expenses
and is not limited to investments principally in New York municipal
obligations. These factors can contribute to the Index potentially
outperforming the Fund. Further information relating to Fund performance,
including expense reimbursements, if applicable, is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1997
Principal
Long-Term Municipal Investments-100.0% Amount Value
_______ _______
<S> <C> <C>
New York-95.3%
Albany Industrial Development Agency:
IDR (Hampton Plaza Project) 6.25%, 3/15/2018.............................. $ 5,600,000 $ 5,741,680
LR:
(New York State Assembly Building Project) 7.75%, 1/1/2010.............. 3,565,000 4,066,631
(New York State Department of Health Building Project) 7.25%, 10/1/2010. 1,740,000 1,934,445
Board of Cooperative Educational Services, COP (Greenport Vocational Facility
Project)
7.875%, 10/1/2000......................................................... 867,909 906,201
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009 (LOC; Dresdner Bank) (a).................................. 2,400,000 2,679,456
Franklin County Solid Waste Management Authority, Solid Waste Systems Revenue
6.125%, 6/1/2009.......................................................... 1,350,000 1,386,598
Jefferson County Industrial Development Agency, SWDR (Champion International Corp.)
7.20%, 12/1/2020............................................................ 2,000,000 2,202,880
Metropolitan Transportation Authority, Transportation Facilities Revenue:
6%, 7/1/2016 (Insured; FSA)............................................... 5,000,000 5,340,800
(Service Contract) 5.25%, 7/1/2017(b)..................................... 11,150,000 10,687,944
New York City, Refunding:
6.375%, 8/1/2004.......................................................... 3,000,000 3,239,520
7.65%, 2/1/2006........................................................... 180,000 202,216
7%, 10/1/2008............................................................. 1,750,000 1,934,292
5.875%, 3/15/2012......................................................... 2,345,000 2,432,398
6.375%, 8/15/2012......................................................... 3,395,000 3,629,764
5.875%, 8/15/2013......................................................... 3,300,000 3,412,959
6%, 8/1/2016.............................................................. 4,000,000 4,160,280
5.875%, 8/15/2016......................................................... 2,715,000 2,790,097
6%, 8/1/2017.............................................................. 2,000,000 2,080,240
6%, 8/1/2021.............................................................. 6,000,000 6,235,440
6.125%, 8/1/2025.......................................................... 5,000,000 5,246,900
New York City Industrial Development Agency:
Civic Facility Revenue:
(Nightingale Bramford School Project) 5.85%, 1/15/2020.................. 3,000,000 3,059,700
(YMCA of Greater New York Project):
5.80%, 8/1/2016....................................................... 1,500,000 1,534,785
8%, 8/1/2016 (Prerefunded 8/1/2001) (c)............................... 3,300,000 3,791,403
Special Facility Revenue:
(Northwest Airlines Inc) 6%, 6/1/2027................................... 1,300,000 1,338,220
(Terminal One Group Association Project) 6%, 1/1/2019................... 3,000,000 3,117,330
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue:
5%, 6/15/2021............................................................. 3,500,000 3,377,535
6%, 6/15/2025............................................................. 9,750,000 10,206,983
New York City Transitional Finance Authority, Future Tax Revenue 5%, 8/15/2027 3,500,000 3,338,265
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New York (continued)
New York State, GO:
5.70%, 3/15/2013.......................................................... $ 2,000,000 $ 2,082,880
Crossover Refunding 6.125%, 11/15/2012.................................... 5,000,000 5,298,150
(Environment Quality) 5.125%, 1/15/2015................................... 3,585,000 3,545,565
New York State Dormitory Authority, Revenues:
Consolidated City University Systems:
5.35%, 7/1/2009 (Insured; FGIC) (b)..................................... 1,500,000 1,560,690
5.75%, 7/1/2013......................................................... 10,005,000 10,484,740
5.625%, 7/1/2016........................................................ 2,500,000 2,583,325
5.75%, 7/1/2018......................................................... 2,500,000 2,620,725
Department of Health:
5.75%, 7/1/2017......................................................... 5,240,000 5,339,979
(Roswell Park Cancer) 6.625%, 7/1/2024.................................. 2,700,000 3,011,472
Refunding, (Mental Health Services Facility) 6%, 8/15/2021................ 1,750,000 1,834,700
State University Educational Facilities:
5.50%, 5/15/2013........................................................ 1,500,000 1,537,050
5.875%, 5/15/2017....................................................... 2,060,000 2,200,410
6%, 5/15/2025........................................................... 3,825,000 3,979,759
WK Nursing Home Corp. 6.05%, 2/1/2026 (Insured; FHA)...................... 5,000,000 5,337,650
New York State Energy, Research and Development Authority:
Electric Facilities Revenue (Long Island Lighting) 7.15%, 9/1/2022........ 3,435,000 3,735,837
Facilities Revenue (Consolidated Edison Co. of New York, Inc. Project) 7.125%, 12/1/2029 2,000,000 2,286,460
Gas Facilities Revenue (Brooklyn Union Gas Co. Project) 6.368%, 4/1/2020.. 5,000,000 5,476,000
New York State Environmental Facilities Corp.:
PCR:
(Pilgrim State Sewer Project) 6.30%, 3/15/2016.......................... 5,200,000 5,742,724
(State Water Revolving Fund):
7.25%, 6/15/2010...................................................... 150,000 66,242
7.25%, 6/15/2010 (Prerefunded 6/15/2001) (c).......................... 1,150,000 1,287,874
Special Obligation Revenue (Riverbank State Park) 7.25%, 4/1/2012......... 2,500,000 2,846,500
Water Facilities Revenue (New Rochelle Water Co. Project) 6.40%, 12/1/2024 2,000,000 2,112,860
New York State Housing Finance Agency, Revenue:
LooseStrife Fields Apartments and Fairway Manor 6.75%, 11/15/2036 (Insured; FHA) 5,960,000 6,397,285
Multi-Family Housing:
Second Mortgage 6.625%, 8/15/2012....................................... 2,500,000 2,637,600
7.75%, 11/1/2020 (Insured; AMBAC)....................................... 1,060,000 1,132,218
Refunding:
Health Facilities 6%, 11/1/2007......................................... 6,000,000 6,477,480
(Housing Mortgage Project) 6.10%, 11/1/2015 (Insured; FSA).............. 2,000,000 2,114,380
Service Contract Obligation:
6%, 9/15/2016........................................................... 8,675,000 9,112,741
6%, 3/15/2026........................................................... 6,645,000 6,946,882
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New York (continued)
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital & Nursing Home Insured Mortgage:
(Shorefront, St. Lukes and Waterfront Nursing Homes) 6.85%, 2/15/2012 (Insured; FHA) $ 3,000,000 $ 3,258,900
6.20%, 8/15/2013 (Insured; FHA)......................................... 3,000,000 3,204,210
6.125%, 2/15/2015....................................................... 5,170,000 5,541,930
Improvement (Mental Health Services Facilities) 6.50%, 2/15/2019.......... 5,290,000 5,704,895
Long Term Health Care (Insured Program) 6.45%, 11/1/2010 (Insured; FSA)... 4,705,000 5,171,501
New York State Mortgage Agency, Homeowner Revenue:
6%, 4/1/2017.............................................................. 2,000,000 2,089,020
6.60%, 10/1/2019.......................................................... 3,500,000 3,771,635
6.05%, 4/1/2026........................................................... 5,680,000 5,908,734
6.40%, 4/1/2027........................................................... 3,995,000 4,263,264
New York State Thruway Authority, Service Contract Revenue:
(Local Highway and Bridge):
6%, 4/1/2012............................................................ 6,195,000 6,639,429
5.75%, 4/1/2013 (Insured; MBIA)......................................... 4,000,000 4,173,160
6.25%, 4/1/2014......................................................... 2,000,000 2,151,600
5.75%, 4/1/2016......................................................... 4,950,000 5,094,342
New York State Urban Development Corp., Correctional Facilities Revenue:
Refunding 5.50%, 1/1/2014................................................. 3,000,000 3,052,920
5.375%, 1/1/2015.......................................................... 3,000,000 2,964,990
Niagara Frontier Transportation Authority, Airport Revenue
(Greater Buffalo International Airport) 6.125%, 4/1/2014 (Insured; AMBAC) (d) 2,700,000 2,865,510
Onondaga County Industrial Development Agency, Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024....................... 4,000,000 4,283,320
Port Authority of New York and New Jersey, Special Obligation Revenue
(Special Project-JFK International Air Terminal) 5.75%, 12/1/2025 (Insured; MBIA) 4,500,000 4,606,920
Rensselaer County Industrial Development Agency, IDR (Albany International
Corp.)
7.55%, 6/1/2007........................................................... 4,000,000 4,766,880
United Nations Development Corp., Revenue, Refunding 5.50%, 7/1/2017........ 2,000,000 2,000,780
U.S. Related-4.7%
Commonwealth of Puerto Rico, GO 6%, 7/1/2026................................ 5,000,000 5,332,650
Puerto Rico Electric Power Authority, Power Revenue 5.929%, 7/1/2023 (d).... 2,000,000 2,099,200
Puerto Rico Public Buildings Authority, Guaranteed Government Facilities 5.25%, 7/1/2021 7,000,000 6,878,480
____________
TOTAL MUNICIPAL INVESTMENTS (cost $287,512,397)............................. $305,789,410
============
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Association Insurance Corporation
FSA Financial Security Assurance PCR Pollution Control Revenue
GO General Obligation SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
_______ _______ _________________ ___________________
<S> <C> <C> <C>
AAA Aaa AAA 21.7%
AA Aa AA 10.7
A A A 35.2
BBB Baa BBB 26.6
BB Ba BB 1.7
Not Rated (f) Not Rated (f) Not Rated (f) 4.1
____
100.0%
====
</TABLE>
Notes to Statement of Investments:
(a) Secured by letters of credit.
(b) Purchased on a delayed-delivery basis.
(c) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(d) Wholly held by the custodian in a segregated account as collateral
for delayed-delivery securities.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's and Standard &
Poors have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1997
Cost Value
_____ _____
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $287,512,397 $305,789,410
Cash....................................... 7,126,451
Interest receivable........................ 4,605,209
Receivable for shares of Common Stock subscribed 6,000
Prepaid expenses........................... 917
____________
317,527,987
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 204,171
Due to Distributor......................... 2,985
Payable for investment securities purchased 12,278,330
Payable for shares of Common Stock redeemed 3,029
Accrued expenses........................... 81,928
____________
12,570,443
____________
NET ASSETS.................................................................. $304,957,544
============
REPRESENTED BY: Paid-in capital............................ $283,959,903
Accumulated net realized gain (loss) on investments 2,720,628
Accumulated net unrealized appreciation (depreciation) on
investments-Note 4(b) 18,277,013
____________
NET ASSETS.................................................................. $304,957,544
============
SHARES OUTSTANDING
(100 million shares of $.01 par value Common Stock authorized).............. 15,093,747
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $20.20
======
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $17,981,321
EXPENSES: Management fee-Note 3(a)................... $ 1,831,617
Shareholder servicing costs-Note 3(b)...... 769,016
Professional fees.......................... 50,372
Directors' fees and expenses-Note 3(c)..... 35,387
Custodian fees............................. 32,191
Prospectus and shareholders' reports-Note 3(b) 20,273
Registration fees.......................... 8,253
Loan commitment fees-Note 2................ 3,047
Miscellaneous.............................. 21,436
____________
Total Expenses....................... 2,771,592
____________
INVESTMENT INCOME-NET....................................................... 15,209,729
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 3,257,845
Net realized gain (loss) on financial futures (534,829)
____________
Net Realized Gain (Loss)............. 2,723,016
Net unrealized appreciation (depreciation) on investments 7,610,372
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 10,333,388
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $25,543,117
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1997 October 31, 1996
________________ ________________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 15,209,729 $ 16,183,164
Net realized gain (loss) on investments............................. 2,723,016 1 ,871,934
Net unrealized appreciation (depreciation) on investments........... 7,610,372 (2,913,106)
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations... 25,543,117 15,141,992
______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (15,209,729) (16,183,164)
Net realized gain on investments.................................... (1,872,173) (2,240,383)
______________ ______________
Total Dividends................................................... (17,081,902) (18,423,547)
______________ ______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 168,930,855 253,147,496
Dividends reinvested................................................ 12,405,077 13,591,136
Cost of shares redeemed............................................. (194,529,439) (276,403,277)
______________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions. (13,193,507) (9,664,645)
______________ ______________
Total Increase (Decrease) in Net Assets......................... (4,732,292) (12,946,200)
NET ASSETS:
Beginning of Period................................................. 309,689,836 322,636,036
______________ ______________
End of Period....................................................... $ 304,957,544 $ 309,689,836
============== ==============
Shares Shares
______________ ______________
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 8,559,560 12,869,050
Shares issued for dividends reinvested.............................. 626,648 689,430
Shares redeemed..................................................... (9,841,404) (14,024,751)
______________ ______________
Net Increase (Decrease) in Shares Outstanding..................... (655,196) (466,271)
============== ==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Year Ended October 31,
______________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
_____ _____ _____ _____ _____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $19.66 $19.90 $18.73 $21.53 $19.55
_____ _____ _____ _____ _____
Investment Operations:
Investment income-net....................... .98 1.01 1.06 1.14 1.17
Net realized and unrealized gain (loss)
on investments............................ .66 (.10) 1.29 (2.49) 2.24
_____ _____ _____ _____ _____
Total from Investment Operations............ 1.64 .91 2.35 (1.35) 3.41
_____ _____ _____ _____ _____
Distributions:
Dividends from investment income-net........ (.98) (1.01) (1.06) (1.15) (1.16)
Dividends from net realized gain on investments (.12) (.14) (.12) (.30) (.27)
_____ _____ _____ _____ _____
Total Distributions......................... (1.10) (1.15) (1.18) (1.45) (1.43)
_____ _____ _____ _____ _____
Net asset value, end of period.............. $20.20 $19.66 $19.90 $18.73 $21.53
===== ===== ===== ===== ====
TOTAL INVESTMENT RETURN......................... 8.63% 4.68% 12.98% (6.59%) 18.05%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..... .91% .91% .86% .76% .69%
Ratio of net investment income
to average net assets..................... 4.98% 5.12% 5.51% 5.62% 5.64%
Decrease reflected in above expense ratios
due to undertakings by the Manager........ - - .04% .12% .22%
Portfolio Turnover Rate..................... 66.32% 80.30% 65.91% 24.56% 23.46%
Net Assets, end of period (000's Omitted)... $304,958 $309,690 $322,636 $307,996 $414,136
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
General New York Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company. The Fund's investment objective is to
maximize current income exempt from Federal, New York State and New York City
income taxes to the extent consistent with the preservation of capital. 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's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Directors. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended
October 31, 1997, the Fund did not borrow under the Facility.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 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 year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings, commitment fees and
extraordinary expenses, exceed 11\2% of the value of the Fund's average net
assets, the Fund may deduct from the payments to be made to the Manager, or
the Manager will bear such excess expense. There was no expense reimbursement
for the period ended October 31, 1997.
(b) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents (a securities dealer, financial institution or other
industry professional) for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them (collectively, "Dreyfus") for advertising and marketing
relating to the Fund and for Servicing, at an aggregate annual rate of .20 of
1% of the value of the Fund's average daily net assets. Both the Distributor
and Dreyfus may pay one or more Service Agents a fee in respect of the Fund's
shares owned by shareholders with whom the Service Agent has a Servicing
relationship or for whom the Service Agent is the dealer or holder of record.
Both the Distributor and Dreyfus determine the amounts, if any, to be paid to
Service Agents under the Plan and the basis on which such payments are made.
The fees payable under the Plan are payable without regard to actual expenses
incurred. The Plan also separately provides for the Fund to bear the costs of
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1%
of the value of the Fund's average daily net assets for any full fiscal year.
During the period ended October 31, 1997, the Fund was charged $616,869
pursuant to the Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended October 31, 1997, the Fund was charged $109,131 pursuant to the
transfer agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A .10% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemption through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended October
31, 1997, redemption fees amounted to $54,238.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4-SECURITIES TRANSACTIONS:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1997
amounted to $198,163,590 and $201,842,347, respectively.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. Investments in financial futures require the Fund to "mark to
market" on a daily basis, which reflects the change in the market value of
the contract at the close of each day's trading. Typically, variation margin
payments are received or made to reflect daily unrealized gains or losses.
When the contracts are closed, the Fund recognizes a realized gain or loss.
These investments require initial margin deposits with a custodian, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board
of Trade on which the contract is traded and is subject to change. At October
31, 1997, there were no financial futures contracts outstanding.
(b) At October 31, 1997, accumulated net unrealized appreciation on
investments was $18,277,013, consisting of $18,294,616 gross unrealized
appreciation and $17,603 gross unrealized depreciation.
At October 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).
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors
General New York Municipal Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
General New York Municipal Bond Fund, Inc., including the statement of
investments, as of October 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 October 31, 1997 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 New York Municipal Bond Fund, Inc. at October 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.
New York, New York
December 10, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended October 31, 1997:
-all the dividends paid from investment income-net are "exempt interest
dividends" (not generally subject to regular Federal income tax and, for
individuals who are New York residents, New York State and New York City
personal income taxes), and
-the Fund hereby designates $.1198 per share as a long-term capital gain
distribution of the $.1213 per share paid on December 5, 1996.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
Registration Mark
[Dreyfus lion "d" logo]
GENERAL NEW YORK
MUNICIPAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 949AR9710
Registration Mark
[Dreyfus logo]
General New York
Municipal Bond
Fund, Inc.
Annual Report
October 31, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
LEHMAN GENERAL
BROTHERS NEW YORK
PERIOD MUNICIPAL MUNICIPAL
BOND INDEX * BOND FUND
10/31/87 10,000 10,000
10/31/88 11,456 10,927
10/31/89 12,385 11,451
10/31/90 13,304 12,076
10/31/91 14,923 13,867
10/31/92 16,175 15,009
10/31/93 18,453 17,718
10/31/94 17,649 16,550
10/31/95 20,268 18,699
10/31/96 21,423 19,573
10/31/97 23,243 21,264
*Source: Lehman Brothers
