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 its six-month reporting period ended April 30,
1997, your Fund produced a total return, including bond price changes and
interest income, of 1.92%.* This is equivalent to an annualized tax-free
distribution rate per share of 5.10%.**
ECONOMIC REVIEW
The U.S. economic juggernaut just kept rolling ahead over the reporting
period. Inflation remained subdued. The unemployment rate fell to its lowest
level in 24 years, and a surge in tax revenues meant good news for the
Administration's budget reduction program. Overall, the economic news has
been stellar.
The economy grew at a robust 5.6% annual rate during the first quarter,
the best quarter in nine years. Aided by falling energy prices, and with no
sign of shortages of raw materials, inflation remained in check. On the
consumer level, the Consumer Price Index (CPI) remained below 3%. Excluding
volatile food and energy prices, the CPI is actually trending downward so far
this year, running at an annual rate of 2.5%. Inflation has been further
restrained by the strong dollar which has moderated the price of imports and
eased potential strains on domestic production capacity.
The strong economy has put an increasing number of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC).
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth
nor wage increases have resulted in any price pressure at the consumer level.
Renewed confidence, spurred by increasing job security and low inflation,
has resulted in a surge in consumer spending. In the first quarter of the
year, spending rose 6.4%, almost double the rate of the previous year's
fourth quarter. The combined six-month performance was the largest increase
in consumer spending over the past ten years. Retail sales have spurted in
the early part of this year as well; first quarter results were sharply
higher than in the last quarter of 1996. Not surprisingly, industrial
production has been building momentum over the reporting period. The latest
report on capacity utilization indicated the highest level in two years. So
far, while the potential exists for production bottlenecks, prices for raw
materials and worker wage demands have remained modest.
Continued economic growth and the resulting rise in tax revenues have
slashed further the Federal budget deficit. Administration officials estimate
that this year's deficit will be about $75 billion, its lowest level in 23
years. Such good news on the deficit could make it easier to negotiate the
Administration's bipartisan plan to balance the budget by 2002.
While we seem to be enjoying the best of all possible economic worlds,
the potential for future inflation is what concerns the Fed. Such concern
resulted in the March decision by the FOMC, the policy-making arm of the
Federal Reserve, to raise the Federal Funds rate one-quarter of a percentage
point to 5.50%. (The Federal Funds rate is the rate of interest banks charge
each other for overnight loans.) The traditional assumption that strong
economic growth and low unemployment will eventually result in rising
inflation still drives the Fed's monetary policy initiatives. Although there
was little reported evidence of incipient inflation, the Fed executed a
preemptive move of moderate monetary restraint in March, perhaps to avoid
being forced to act more harshly later. There is little reason to suspect
that the Fed will soon change this policy, although with the economy seeming
to enjoy strong growth without surging inflation, the FOMC may be reluctant
to raise rates again in the immediate future.
MARKET ENVIRONMENT
The supply of New York paper has been moderate and most deals that have
come to market have been very well received. The high demand and limited
supply enabled the municipal market to turn in a strong performance compared
to the taxable fixed-income markets. Although it was assumed that most of the
FOMC's March move to higher rates was already incorporated into market
prices, levels eroded further after the rate hike. After recovering, the
market moved into a narrow trading range, focusing on each new economic
number that was released. Some of the most dramatic changes in the municipal
market occurred in spread relationships, and the flattening of the yield
curve. In the ongoing quest for yield, lower-rated issues have become
expensive when compared to higher quality paper.
PORTFOLIO OVERVIEW
Given the flattening of the yield curve and the narrowing of spreads in
the 20-30 year range, we have focused most of our current investments in the
20-year and shorter maturity range. This has enabled your Fund to maintain a
competitive yield while reducing volatility. We will continue this strategy
until it becomes apparent that further Fed action is no longer warranted. The
Fund holds a large percentage of paper with coupons that are 6% or higher.
This coupon has been in constant demand from the retail sector and continues
to perform well. The availability of high yield paper in the New York market
has been very limited and therefore expensive. We have felt that the spread
relationship for such paper was of little advantage and did not warrant an
extension into the longer end of the market.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 16, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period, adjusted for any capital gain
distributions.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments_93.5% Amount Value
_______ _______
New York_90.2%
Albany Industrial Development Agency:
IDR (Hampton Plaza Project) 6.25%, 3/15/2018.............................. $ 5,600,000 $ 5,494,608
LR:
(New York State Assembly Building Project) 7.75%, 1/1/2010.............. 3,615,000 3,974,584
(New York State Department of Health Building Project) 7.25%, 10/1/2010. 1,755,000 1,874,954
Board of Cooperative Educational Services, COP (Greenport Vocational Facility
Project)
7.875%, 10/1/2000......................................................... 996,116 1,038,979
Buffalo and Erie Public Building Authority, Toll Bridge System Revenue
5.75%, 1/1/2025 (Insured; MBIA)........................................... 4,200,000 4,167,996
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009 (LOC; Dresdner Bank) (a).................................. 2,400,000 2,632,008
Franklin County Solid Waste Management Authority, Solid Waste Systems Revenue
6.125%, 6/1/2009.......................................................... 1,350,000 1,344,330
Jefferson County Industrial Development Agency, SWDR (Champion International
Corp.)
7.20%, 12/1/2020.......................................................... 2,000,000 2,139,920
Metropolitan Transportation Authority:
Service Contract Transport Facilities, Refunding:
5.75%, 7/1/2015......................................................... 5,000,000 4,811,550
5.625%, 7/1/2016........................................................ 3,000,000 2,844,810
Transport Facilities, Revenue 6%, 7/1/2016 (Insured; FSA)................. 5,000,000 5,103,550
New York City:
6.375%, 8/1/2004.......................................................... 3,000,000 3,147,660
7.65%, 2/1/2006........................................................... 1,900,000 2,138,856
7%, 10/1/2008............................................................. 1,750,000 1,867,705
6.375%, 8/15/2012......................................................... 3,395,000 3,478,211
5.875%, 8/15/2013......................................................... 3,300,000 3,230,304
6%, 8/1/2016.............................................................. 4,000,000 3,939,040
6.125%, 8/1/2025.......................................................... 5,000,000 4,953,000
New York City Industrial Development Agency:
Civic Facility Revenue:
(Nightingale Bramford School Project) 5.85%, 1/15/2020.................. 3,000,000 2,973,660
(YMCA of Greater New York Project):
5.80%, 8/1/2016 (b)................................................... 1,500,000 1,457,025
8%, 8/1/2016.......................................................... 3,300,000 3,762,990
Special Facility Revenue (Terminal One Group Association Project) 6%, 1/1/2019 (c) 3,000,000 2,969,220
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue:
5.50%, 6/15/2019.......................................................... 3,700,000 3,511,596
6%, 6/15/2025............................................................. 9,750,000 9,774,862
5.875%, 6/15/2026......................................................... 9,365,000 9,299,632
New York State, Crossover, Refunding 6.125%, 11/15/2012..................... 5,000,000 5,167,500
New York State, GO 5.70%, 3/15/2013......................................... 2,000,000 2,002,540
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GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New York (continued)
New York State Dormitory Authority, Revenues:
Consolidated City University Systems:
5.75%, 7/1/2013......................................................... $ 10,005,000 $ 9,915,855
5.75%, 7/1/2018......................................................... 2,500,000 2,453,275
Court Facilities, Lease 5.50%, 5/15/2010.................................. 3,000,000 2,897,070
Department of Health:
5.75%, 7/1/2017......................................................... 5,240,000 5,037,107
(Roswell Park Cancer) 6.625%, 7/1/2024.................................. 2,700,000 2,876,526
Refunding:
(Ideal Senior Living Center Housing Corp.) 5.90%, 8/1/2026 (Insured; MBIA) 1,875,000 1,878,619
(Mental Health Services Facility) 6%, 8/15/2021......................... 1,750,000 1,733,253
State University Educational Facilities:
5.875%, 5/15/2017....................................................... 2,060,000 2,052,728
6%, 5/15/2025........................................................... 3,825,000 3,776,308
WK Nursing Home Corp. 6.05%, 2/1/2026..................................... 5,000,000 5,033,900
New York State Energy, Research and Development Authority:
Electric Facilities Revenue (Long Island Lighting) 7.15%, 9/1/2022........ 3,435,000 3,641,581
Facilities Revenue (Consolidated Edison Co. of New York, Inc.) 7.125%, 12/1/2029 2,000,000 2,211,680
Gas Facilities Revenue (Brooklyn Union Gas Co. Project) 6.368%, 4/1/2020.. 5,000,000 5,137,650
New York State Environmental Facilities Corp.:
PCR:
(State Water Revolving Fund) 7.25%, 6/15/2010........................... 1,300,000 1,426,776
(Pilgrim State Sewer Project) 6.30%, 3/15/2016.......................... 5,200,000 5,586,048
Special Obligation Revenue (Riverbank State Park) 7.25%, 4/1/2012......... 2,500,000 2,806,775
SWDR (Occidental Petroleum Corp.) 5.70%, 9/1/2028......................... 1,400,000 1,318,324
Water Facilities Revenue (New Rochelle Water Co. Project) 6.40%, 12/1/2024 2,000,000 2,067,980
New York State Housing Finance Agency, Revenue:
Health Facilities 6%, 11/1/2007........................................... 6,000,000 6,121,740
LooseStrife Fields Apartments and Fairway Manor 6.75%, 11/15/2036 (Insured; FHA) 5,975,000 6,226,786
Multi-Family Housing:.....................................................
Second Mortgage 6.625%, 8/15/2012....................................... 2,500,000 2,614,800
7.75%, 11/1/2020 (Insured; AMBAC)....................................... 1,060,000 1,129,865
Refunding (Housing Mortgage Project) 6.10%, 11/1/2015 (Insured; FSA).... 2,000,000 2,038,520
Service Contract Obligation:
6%, 9/15/2016........................................................... 8,675,000 8,620,261
6%, 3/15/2026........................................................... 6,645,000 6,559,147
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital & Nursing Home Insured Mortgage:
6.85%, 2/15/2012 (Insured; FHA)......................................... 3,000,000 3,199,440
6.20%, 8/15/2013 (Insured; FHA)......................................... 3,000,000 3,109,230
6.125%, 2/15/2015 ...................................................... 5,170,000 5,315,019
Improvement (Mental Health Services Facilities) 6.50%, 2/15/2019.......... 5,290,000 5,492,713
Long Term Health Care (Insured Program) 6.45%, 11/1/2010 (Insured; CGIC) (b) 5,000,000 5,327,800
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GENERAL NEW YORK MUNICIPAL BOND FUND, INC. <C> <C>
STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ _______
New York (continued)
New York State Mortgage Agency, Homeowner Revenue:
6.60%, 10/1/2019.......................................................... $ 3,500,000 $ 3,620,575
6.45%, 10/1/2020.......................................................... 2,000,000 1,986,100
6.05%, 4/1/2026........................................................... 5,685,000 5,600,691
6.40%, 4/1/2027........................................................... 4,000,000 4,077,640
New York State Thruway Authority, Service Contract Revenue:
(Local Highway and Bridge):
6.25%, 4/1/2014......................................................... 2,000,000 2,048,100
5.75%, 4/1/2016......................................................... 4,950,000 4,797,293
New York State Urban Development Corp., Correctional Facilities, Revenue,
Refunding:
5.50%, 1/1/2014........................................................... 3,000,000 2,861,250
5.50%, 1/1/2016........................................................... 4,000,000 3,740,680
5.50%, 1/1/2018........................................................... 2,490,000 2,305,964
5.70%, 1/1/2027........................................................... 5,000,000 4,736,600
Niagara Frontier Transportation Authority, Airport Revenue
(Greater Buffalo International Airport) 6.125%, 4/1/2014 (Insured; AMBAC). 2,700,000 2,771,631
Onondaga County Industrial Development Agency, Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024 (b)................... 4,000,000 3,996,920
Port Authority of New York and New Jersey, Special Obligation Revenue
(Special Project-JFK International Terminal) 5.75%, 12/1/2022 (Insured; MBIA) (c) 4,000,000 3,913,280
Rensselaer County Industrial Development Agency, IDR (Albany International
Corp.)
7.55%, 6/1/2007........................................................... 4,000,000 4,580,640
Suffolk County Industrial Development Agency, Civic Facility Revenue
(Long Island Association of Children) 7.35%, 8/1/2009 (LOC; Barclays Bank) (a) 1,875,000 1,974,300
U.S. Related_3.3%
Commonwealth of Puerto Rico, Refunding 6%, 7/1/2026......................... 5,000,000 5,044,650
Commonwealth of Puerto Rico Highway and Transportation Authority, Highway
Revenue
5.50%, 7/1/2015........................................................... 3,030,000 2,966,734
Puerto Rico Electric Power Authority, Power Revenue 5.929%, 7/1/2023........ 2,000,000 2,013,780
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $271,861,499)................... $279,744,694
=======
Short-Term Municipal Investments_6.5%
New York State Energy, Research and Development Authority, PCR (NY Electric
and Gas) VRDN
4% (LOC; Union Bank of Switzerland) (a,d)................................. $ 1,500,000 $ 1,500,000
Port Authority of New York and New Jersey, Special Obligation Revenue
(Versatile Structure Obligation) VRDN 3.95% (d)........................... 17,800,000 17,800,000
_______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $19,300,000)................... $ 19,300,000
=======
TOTAL MUNICIPAL INVESTMENTS (cost $291,161,499)............................. $299,044,694
=======
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GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
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Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
CGIC Capital Guaranty Insurance Company LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FSA Financial Security Assurance PCR Pollution Control Revenue
GO General Obligation SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- --------- -------- ------------------ -------------------
AAA Aaa AAA 21.9%
AA Aa AA 9.2
A A A 33.2
BBB Baa BBB 23.9
BB Ba BB 1.2
F1+,F-1 MIG1, VMIG1 & P1 SP1, A1 6.5
Not Rated (f) Not Rated (f) Not Rated (f) 4.1
-----
100.0%
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Notes to Statement of Investments:
(a) Secured by letters of credit.
(b) Wholly held by the custodian in a segregated account as collateral
for delayed-delivery securities.
(c) Purchased on a delayed-delivery basis.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
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STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 (UNAUDITED)
Cost Value
_______ _______
ASSETS: Investments in securities_See Statement of Investments $291,161,499 $299,044,694
Cash....................................... 265,396
Interest receivable........................ 4,757,389
Prepaid expenses........................... 7,416
_______
304,074,895
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 191,242
Due to Distributor......................... 3,674
Payable for investment securities purchased 6,853,833
Accrued expenses........................... 60,360
_______
7,109,109
_______
NET ASSETS.................................................................. $296,965,786
=======
REPRESENTED BY: Paid-in capital............................ $288,173,099
Accumulated net realized gain (loss) on investments 909,492
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4...................... 7,883,195
_______
NET ASSETS.................................................................. $296,965,786
=======
SHARES OUTSTANDING
(100 MILLION SHARES OF $.01 PAR VALUE COMMON STOCK AUTHORIZED).............. 15,291,424
NET ASSET VALUE, offering and redemption price per share_Note 3(d).......... $19.42
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SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
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STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $9,063,227
EXPENSES: Management fee_Note 3(a)................... $ 906,248
Shareholder servicing costs_Note 3(b)...... 384,515
Professional fees.......................... 22,143
Directors' fees and expenses_Note 3(c)..... 20,888
Custodian fees............................. 16,287
Prospectus and shareholders' reports_Note 3(b) 8,984
Registration fees.......................... 2,628
Loan commitment fees_Note 2................ 1,721
Miscellaneous.............................. 11,253
______
Total Expenses......................... 1,374,667
______
INVESTMENT INCOME_NET....................................................... 7,688,560
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ 911,880
Net unrealized appreciation (depreciation) on investments (2,783,446)
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (1,871,566)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $5,816,994
======
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SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
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Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------- ---------
OPERATIONS:
Investment income_net............................................. $ 7,688,560 $ 16,183,164
Net realized gain (loss) on investments........................... 911,880 1,871,934
Net unrealized appreciation (depreciation) on investments......... (2,783,446) (2,913,106)
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations. 5,816,994 15,141,992
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................. (7,688,560) (16,183,164)
Net realized gain on investments.................................. (1,872,173) (2,240,383)
_______ _______
Total Dividends................................................. (9,560,733) (18,423,547)
_______ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 102,103,210 253,147,496
Dividends reinvested.............................................. 6,988,525 13,591,136
Cost of shares redeemed........................................... (118,072,046) (276,403,277)
_______ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions (8,980,311) (9,664,645)
_______ _______
Total Increase (Decrease) in Net Assets....................... (12,724,050) (12,946,200)
NET ASSETS:
Beginning of Period............................................... 309,689,836 322,636,036
_______ _______
End of Period..................................................... $296,965,786 $309,689,836
======= =======
Shares Shares
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 5,215,934 12,869,050
Shares issued for dividends reinvested............................ 356,232 689,430
Shares redeemed................................................... (6,029,685) (14,024,751)
_______ _______
Net Increase (Decrease) in Shares Outstanding................... (457,519) (466,271)
======= =======
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SEE NOTES TO FINANCIAL STATEMENTS.
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.
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Six Months Ended
April 30, 1997 Year Ended October 31,
----------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
--------- ---- ---- ---- ---- ----
Net asset value, beginning of period.. $19.66 $19.90 $18.73 $21.53 $19.55 $19.24
------- ---- ---- ---- ---- ----
Investment Operations:
Investment income_net................. .49 1.01 1.06 1.14 1.17 1.24
Net realized and unrealized gain (loss)
on investments...................... (.12) (.10) 1.29 (2.49) 2.24 .31
------- ---- ---- ---- ---- ----
Total from Investment Operations...... .37 .91 2.35 (1.35) 3.41 1.55
------- ---- ---- ---- ---- ----
Distributions:
Dividends from investment income_net.. (.49) (1.01) (1.06) (1.15) (1.16) (1.24)
Dividends from net realized gain on investments (.12) (.14) (.12) (.30) (.27) --
------- ---- ---- ---- ---- ----
Total Distributions................... (.61) (1.15) (1.18) (1.45) (1.43) (1.24)
------- ---- ---- ---- ---- ----
Net asset value, end of period........ $19.42 $19.66 $19.90 $18.73 $21.53 $19.55
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 3.87%(1) 4.68% 12.98% (6.59%) 18.05% 8.23%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .91%(1) .91% .86% .76% .69% .62%
Ratio of net investment income
to average net assets............... 5.09%(1) 5.12% 5.51% 5.62% 5.64% 6.32%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. -- -- .04% .12% .22% .39%
Portfolio Turnover Rate............... 26.89%(2) 80.30% 65.91% 24.56% 23.46% 43.20%
Net Assets, end of period (000's Omitted) $296,966 $309,690 $322,636 $307,996 $414,136 $284,383
- --------------------------
(1) Annualized.
(2) Not annualized.
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SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 (UNAUDITED) (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 in charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended April
30, 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 1 1/2% 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 April 30, 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 April 30, 1997, $305,341 was charged to the Fund
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. Such
compensation amounted to $55,691 for the period ended April 30, 1997.
(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 attendence fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(D) Effective November 4, 1996, a .10% redemption fee is charged 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 April 30, 1997, redemption fees amounted to $31,738.
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997,
amounted to $79,968,598 and $96,930,022, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $7,883,195, consisting of $8,843,049 gross unrealized appreciation and
$959,854 gross unrealized depreciation.
At April 30, 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).
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. 949SA974
Registration Mark
[Dreyfus logo]
General New York
Municipal Bond
Fund, Inc.
Semi-Annual
Report
April 30, 1997
