TREASURERS FUND INC /MD/, N-30D, 1997-07-03

TREASURERS FUND INC /MD/
N-30D, 1997-07-03

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THE TREASURER'S FUND

19 OLD KINGS HIGHWAY SOUTH
DARIEN, CT 06820
1 (800) TSR-FUND / 1 (800) 877-3863

SEMI-ANNUAL REPORT
APRIL 30, 1997

INVESTMENT ADVISOR
- ------------------
GABELLI FIXED INCOME L.L.C.
19 Old Kings Highway South
Darien, CT 06820

ADMINISTRATOR
- -------------
GABELLI FUNDS, INC.
One Corporate Center
Rye, NY 10580

DISTRIBUTOR
- -----------
GABELLI FIXED INCOME DISTRIBUTORS, INC.
19 Old Kings Highway South
Darien, CT 06820

CUSTODIAN
- ---------
CUSTODIAL TRUST COMPANY
101 Carnegie Center
Princeton, NJ 08540

LEGAL COUNSEL
- -------------
BATTLE FOWLER LLP
75 East 55th Street
New York, NY 10022

THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF THE TREASURER'S FUND.
ITS USE IN CONNECTION WITH ANY OFFERING OF THE FUND'S SHARES IS AUTHORIZED ONLY
IN CASE OF A CONCURRENT OR PRIOR DELIVERY OF THE FUND'S CURRENT PROSPECTUS.

<PAGE>

THE TREASURER'S FUND

Dear Fellow Shareholder:

We are pleased to present the semi-annual report for The Treasurer's Fund
for the six months ended April 30, 1997. The total net assets of The Treasurer's
Fund portfolios on April 30, 1997 (in millions) were:

Domestic Prime Money Market Portfolio $252.1
Tax Exempt Money Market Portfolio 164.9
U.S. Treasury Money Market Portfolio 129.3

The portfolios continue to hold investments in very high quality money
market securities of domestic, corporate and municipal issuers and U.S.
Government obligations. The weighted average maturities of the portfolios were
well within the permitted maximum of 90 days as stated below:

Domestic Prime Money Market Portfolio 30 days
Tax Exempt Money Market Portfolio 39 days
U.S. Treasury Money Market Portfolio 46 days

COMMENTARY

Both the debt market and the equity market ended 1996 facing an economy
that was healthy and growing in an environment without inflation. Though the
Federal Reserve Board has had a one-sided directive since mid-summer of 1996,
biased toward tightening, until now there seemed to be little incentive for the
Fed to raise interest rates. The market shrugged off strong housing starts and
manufacturing data and only responded to the fact that there seemed to be very
little actual price pressure. Early in the year the one year Treasury note stood
@ 5.58% and the 30 year Treasury @ 6.60%. These levels indicated true
complacency on the part of debt market traders.

With respect to a Federal Reserve move this complacency was lost as the
first employment numbers were reported in January. Non-farm payroll increased by
262,000 with strong growth overall. The 30 year Treasury rose to almost 6.90% in
response to this data. The employment report released in early February was also
very strong with 271,000 added to the nonfarm payrolls. However, the market
didn't react in response to low inflation numbers, and the one year yield
rallied through 5.50% and the 30 year below 6.70%.

Chairman Greenspan's HUMPHREY HAWKINS testimony on February 27, 1997 put a
stop to the strong upbeat tone. He started talking seriously about pre-emptive
moves to stem the growth of the economy. As more information such as high retail
sales and a whopping February employment report (+339,000) in non-farm payrolls
was released, prices of bonds and stocks continued to move. The strength of the
economy was suddenly unmistakable. The Fed raised the Fed Funds rate 25 basis
points to 5.50% on March 25th. The March employment report released in early
April brought the quarterly average of non-farm payrolls to 242,000 well above
the average for the 4th quarter of 1996. Also the unemployment rate dropped to
5.20%.

The Fed's decision to leave the Funds rate unchanged following the May 20th
FOMC meeting has left bonds trading within a tight trading range over the past
few weeks. As expected the rally associated with the Fed's inaction was short
lived and its benefits accrued significantly to the front end of the yield
curve. Yields on 2 year notes fell several basis points immediately following
the news while bond yields fell a modest two basis points. However, once the
initial enthusiasm diminished bonds came under pressure as the focus shifted to
the continued deterioration of the dollar. Furthermore, the 2 year and 5 year
note auctions added additional pressure to the market, sending bond yields
through the 7% level. Following the auctions, bonds began to show signs of
strength with a stable dollar, pushing the 30 year bond yield back below 7%.
Despite a strong NAPM, bonds have been able to extend these gains, sending the
yield to 6.88%, four basis points lower than their level before the FOMC
meeting.

<PAGE>

OUTLOOK

We believe the labor market will remain the focal point of the Fed because
that is where both resource pressures look most severe and where those pressures
could feed most quickly to prices. The three consecutive monthly declines in
retail sales and the five consecutive monthly declines in PPI give the Fed more
than sufficient reason to keep policy steady at the July meeting. As long as the
labor markets remain tight, the Fed will be poised to raise rates at the
subsequent meeting. It will take a sharp turn of evens for the Fed to act at the
August 19th meeting. But since there will be two monthly reports of indicators,
like employment and retail sales, between the two meetings, as well as the
release of the second quarter employment cost index, such an action is entirely
possible.

GABELLI FIXED INCOME L.L.C.

With investment interests in fixed income securities rising and expected to
grow well into the 21st century, we are especially pleased to announce that
Gabelli Funds, Inc. transformed its decade long financial partnership with
Gabelli-O'Connor Fixed Income Mutual Fund Management Co. into a strategic one.
Effective April 14, 1997 Gabelli-O'Connor's operations were combined with
Gabelli Funds' other fixed income products to create Gabelli Fixed Income L.L.C.
Gabelli Fixed Income's style of management is a straightforward, total rate of
return approach, providing principal protection, daily liquidity and competitive
results through the active management of the short fixed income markets. The
style and philosophy of the new firm will remain to provide the best possible
return within a conservative framework of safety and liquidity.

SPECIAL MEETING OF SHAREHOLDERS

A special meeting of shareholders of The Treasurer's Fund, Inc. was held on
April 14, 1997 at the offices of Gabelli-O'Connor. At that meeting the
shareholders approved new Advisory Agreements for each portfolio, elected
thirteen directors and ratified the selection of Ernst & Young LLP as
independent accountants of the Corporation.

We are proud that our association is growing and excited about the
possibility of providing you with additional products which, we believe, will
assist you in achieving your financial goals.

Sincerely,

/s/Ronald S. Eaker
Ronald S. Eaker
President and Chief Investment Officer

The Domestic Prime Money Market Portfolio, Tax-Exempt Money Market
Portfolio, and U.S. Treasury Money Market Portfolio attempt to maintain a stable
net asset value per share of $1.00. There can be no assurance that the
Portfolios will be successful in this regard. Past performance is not indicative
of future results. Investments in the Portfolios are not insured, nor
guaranteed, by the U.S. Government.

2
<PAGE>

THE TREASURER'S FUND
DOMESTIC PRIME MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
APRIL 30, 1997
<TABLE>
<CAPTION>
YIELD TO
MATURITY
CREDIT AT TIME OF MATURITY PRINCIPAL VALUE
RATINGS* PURCHASE DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER - 41.4%
Aesop Funding Corp., 5.60%..................................... A1/P1 5.704% 5/1/97 $10,000,000 $10,000,000
SouthWest Student Services Corp. 5.55%......................... A1/P1 5.646 5/1/97 10,000,000 10,000,000
First Chicago Capital Markets, Inc., 5.57%..................... A1/P1 5.674 5/2/97 10,500,000 10,498,375
Alamo Funding L.P., 5.56%...................................... A1+/P1 5.665 5/6/97 10,000,000 9,992,278
Fingerhut Owner Trust, 5.55%................................... A1/P1 5.634 5/7/97 12,000,000 11,988,900
Avnet, Inc., 5.36%............................................. A1/P1 5.480 5/12/97 5,000,000 4,991,811
First Credit Corp., 5.58%...................................... A1/P1 5.686 5/12/97 3,500,000 3,494,033
First Credit Corp., 5.58%...................................... A1/P1 5.685 5/12/97 7,000,000 6,988,065
Louis Dreyfus Corp., 5.37%..................................... A1+/P1 5.494 5/16/97 12,000,000 11,973,150
National Fleet Funding Corp., 5.57%............................ A1/P1 5.691 5/23/97 11,500,000 11,460,855
B.I. Funding, Inc., 5.42%...................................... A1/NR 5.554 5/28/97 8,000,000 7,967,480
Avnet, Inc., 5.58%............................................. A1/P1 5.700 6/2/97 5,000,000 4,975,200
------------
TOTAL COMMERCIAL PAPER ............................................................................................... 104,330,147
------------
ADJUSTABLE RATE SECURITIES - 4.5%
Health Insurance Plan of Greater New York ACES,
Series 1990B-1, (07/01/16)................................... A1+/NR 5.576 5/1/97 6,300,000 6,300,000
New Jersey Economic Development Authority
Series MSNBC/CNBC-A (10/01/21) (3)........................... A1+/P1 5.767 10/1/97 5,000,000 5,000,000
------------
TOTAL ADJUSTABLE RATE SECURITIES ..................................................................................... 11,300,000
------------
U.S. GOVERNMENT AGENCIES - 4.0%
FNMA Discount Notes............................................ NR/NR 5.790 10/16/97 10,000,000 10,000,000
------------
TOTAL U.S. GOVERNMENT AGENCIES ....................................................................................... 10,000,000
------------

U.S TREASURY ISSUES - 11.6%
U.S. Treasury Bills............................................................. 5.274 7/17/97 10,000,000 9,890,168
U.S. Treasury Bills............................................................. 5.359 7/24/97 10,000,000 9,878,667
U.S. Treasury Bills............................................................. 5.533 2/5/98 5,000,000 4,798,750
U.S. Treasury Bills............................................................. 5.667 3/5/98 5,000,000 4,773,706
------------
TOTAL U.S. TREASURY ISSUES ........................................................................................... 29,341,291
------------
LOAN PARTICIPATIONS - 4.8%
Army & Air Force Exchange Services, 5.55% (2).................. NR/NR 5.520 5/1/97 12,000,000 12,000,000
------------
TOTAL LOAN PARTICIPATIONS ............................................................................................ 12,000,000
------------
REPURCHASE AGREEMENTS - 33.8%
Bear Stearns & Co., Inc. dated 04/30/97......................................... 5.370 5/1/97 36,365,702 36,365,702
(Proceeds at maturity, $36,371,127) collaterized by:
$75,245,000 U.S. Treasury STRIPS 11/15/22 vs. $12,486,155
$25,220,000 U.S. Treasury STRIPS 11/15/13 vs. $7,889,068
$78,100,000 U.S. Treasury STRIPS 02/15/19 vs. $16,718,086

Nomura Securities International, Inc., dated 04/30/97........................... 5.450 5/1/97 49,000,000 49,000,000
(Proceeds at maturity, $49,007,418) collaterized by:
$50,000,000 FNMA Note, 6.230%, 03/01/02 vs. $48,405,000
$615,000 FNMA Note, 6.500%, 02/11/02 vs. $595,000
------------
TOTAL REPURCHASE AGREEMENTS .......................................................................................... 85,365,702
------------
TOTAL INVESTMENTS - 100.1% (COST $252,337,140)+ ...................................................................... $252,337,140
============
*,**,***,+,(a) (2) (3) See Footnotes to Portfolios
</TABLE>

See accompanying notes to financial statements

<PAGE>

THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
APRIL 30, 1997

<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- ---------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES - 99.1%
ALABAMA - 0.9%
Huntsville IDR TENR #66, Series 1982 (Avco Corporation
Project) (11/01/99)**........................................ NR/NR 5.000% 05/07/97 $1,500,000 $ 1,500,000
-----------

ALASKA - 0.3%
Anchorage Alaska Tax Anticipation GO Notes (12/17/97)**........ MIG1/Sp1+ 4.000 12/07/97 500,000 500,799
-----------

ARIZONA - 2.4%
Arizona HFAR, Series 1985 (Pooled Loan Program) (FGIC)
(10/01/15)**................................................. VMIG1/A1 4.550 05/07/97 500,000 500,000
Chandler IDA (SMP II Limited Partnership Project) (LOC
Credit Lyonnais & Republic National Bank, NY) (12/01/15)**... VMIG1/NR 4.500 05/07/97 1,500,000 1,500,000
Pima County IDA, Series 1982 A, (Tucson Electric Power Co.
Project) (LOC Bank of America) (07/01/22)**.................. VMIG1/A1+ 4.550 05/07/97 2,000,000 2,000,000
-----------
TOTAL ARIZONA 4,000,000
-----------

CONNECTICUT - 1.8%
Connecticut Special Assessment Unemployment Compensation,
Advance Fund Revenue Bond, Series C 1993 (SPA FGIC)
(FGIC) (11/15/01)***(b)...................................... VMIG1/A1+/F1+ 3.900 07/01/97 3,000,000 3,000,000
-----------

FLORIDA - 3.8%
Dade County HFAR, Series 1990
(Miami Children's Hospital Project)
(LOC Barnett Bank of South Florida) (09/01/20)**............. VMIG1/A1 4.150 05/01/97 5,000,000 5,000,000
Hillsborough County Florida, Housing Finance Authority
Mortgage Revenue Bond (GNMA/FNMA Coll.) (10/01/30)***@....... VMIG1/NR 3.650 03/15/98 1,000,000 1,000,000
Indian Trace Community Development District (Basin I Water
Management Project) (MBIA; SPA Swiss Bank) (05/01/10)**...... VMIG1/A1+ 4.400 05/07/97 300,000 300,000
-----------
TOTAL FLORIDA 6,300,000
-----------

GEORGIA - 5.8%
Burke County Development Authority PCR (Oglethorpe Power
Corp.VOGTLE-A) (AMBAC) (12/01/97)***......................... Aaa/AAA 3.600 12/01/97 3,000,000 3,000,000
Burke County Development Authority PCR (Oglethorpe Power
Corp. Project) (FGIC) (SPA Canadian Imperial Bank)
(01/01/16)** (b)............................................. VMIG1/A1+/P1+ 4.400 05/07/97 4,840,000 4,840,000
DeKalb County Private Hospital Authority (LOC SunTrust
Bank) (03/01/24)**........................................... VMIG1/A1+ 4.500 05/07/97 1,700,000 1,700,000
-----------
TOTAL GEORGIA 9,540,000
-----------

ILLINOIS - 3.3%
Illinois HFAR, Series E (Hospital Sisters Service)
(MBIA) (SPA Morgan Guaranty Trust) (12/01/15)**.............. VMIG1/AAA 4.500 05/07/97 2,600,000 2,600,000
Illinois State Toll Highway Authority, Series B (MBIA)
(LOC Societe Generale) (01/01/10)**(b)....................... VMIG1/A1+/F1+ 4.400 05/07/97 2,900,000 2,900,000
-----------
TOTAL ILLINOIS 5,500,000
-----------
</TABLE>

See accompanying notes to financial statements

<PAGE>

THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1997

<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- ---------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
INDIANA - 1.0%
Indianapolis Indiana Resource Recovery Revenue Adj.-Tender
- OGDEN Martin System (LOC Swiss Bank) (12/01/16)**@......... NR/A1+ 4.150% 05/01/97 $1,700,000 $ 1,700,000
-----------

KANSAS - 5.5%
City of Burlington, Kansas Customized Purchase PCR
Refunding Bonds (Kansas City Power & Light Co. Proj.)
(LOC Deutsche Bank ) (10/01/17)****.......................... P1/A1+ 3.450 05/12/97 4,000,000 4,000,000
Burlington PCR (Kansas City Power & Light Co. Project)
(LOC Toronto Dominion Bank) (10/01/17)****................... P1/A1+ 3.450 06/05/97 2,000,000 2,000,000
City of Wichita, Kansas GO Renewal &
Improvement Temporary Notes Series 1990 (08/28/97)........... MIG1/SP1+ 4.250 08/28/97 3,000,000 3,006,767
-----------
TOTAL KANSAS 9,006,767
-----------

KENTUCKY - 1.8%
Ohio County PCR, (Big Rivers Electric Corporation Project)
(LOC Chase Bank) (10/01/15)**................................ NR/NR 4.850 05/07/97 2,900,000 2,900,000
-----------

LOUISIANA - 7.3%
Louisiana State GO Bonds, Series A
(LOC Credit Local de France) (07/01/03)****.................. VMIG1/A1+ 4.600 05/01/97 3,700,000 3,700,000
Louisiana State Offshore Term Auth Deepwater Port Revenue
ACES-REF-LOOP Inc. 1st Stage
(LOC Union Bank of Switzerland ) (09/01/06)**................ VMIG1/Aaa 3.950 05/01/97 1,700,000 1,700,000
Parish of East Baton Rouge, PCR Refunding Bonds,
(Exxon Corp. Project) (11/01/19)**........................... P1/A1+ 4.050 05/01/97 2,400,000 2,400,000
Plaquemines LA Port HBR & Term. Dist., Marine Term. Facilities
Revenue (Electro-Coal Transfer B) (09/01/07)**............... P1/A1+ 3.350 05/15/97 4,200,000 4,200,000
-----------
TOTAL LOUISIANA 12,000,000
-----------

MICHIGAN - 2.7%
Michigan State Hospital Finance Authority (DCNHS-
Providence Hospital) Series 1994 (11/01/14)***............... VMIG1/A1+ 4.450 05/07/97 3,000,000 3,000,000
Wayne Charter County Airport Revenue (Detroit Metropolitan
County Project-B)(LOC-Bayerische Landesbank) (12/01/16)***... VMIG1/A1+ 4.500 05/07/97 1,500,000 1,500,000
-----------
TOTAL MICHIGAN 4,500,000
-----------

MINNESOTA - 1.3%
City of Rochester, Minnesota Series, 1988F Adjustable
Tender Health Care Facilities Revenue Bonds
(Mayo Foundation/Mayo Medical Center) (07/09/97)****........ VMIG1/A1+ 3.700 07/09/97 2,160,000 2,160,000
-----------

NEBRASKA - 0.1%
Lancaster County Hospital Authority Revenue (Bryan Memorial
Hospital Project) (MBIA) (SPA Commerzbank Aktiengesel)
(06/01/12)**................................................. VMIG1/A1+ 4.400 05/07/97 200,000 200,000
-----------

NEW JERSEY - 0.6%
New Jersey State Economic Development Authority, Thermal
Energy Facilities Revenue (12/01/09)*** (a).................. NR/NR 3.600 06/14/97 1,000,000 1,000,000
-----------
</TABLE>

See accompanying notes to financial statements

5
<PAGE>

THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1997

<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- ---------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
NEW YORK - 4.7%
New York City GO Bonds Fiscal 1994 Series A - A8 (LOC
Morgan Guaranty Trust) (08/01/17)**.......................... VMIG1/A1+ 4.050% 05/01/97 $1,300,000 $ 1,300,000
New York City GO Bonds Fiscal 1994, Series B, Subseries B4
(MBIA) (LIQ National Westminster Bank PLC) (08/15/23)**...... VMIG1/A1+ 4.050 05/01/97 1,000,000 1,000,000
New York City Municipal Water Finance Authority & Sewer
System Revenue, 1994 Series C (FGIC) (06/15/23)**............ VMIG1/A1+ 4.050 05/01/97 1,100,000 1,100,000
New York City Municipal Water Finance Authority & Sewer
System Revenue, 1992 Series C (FGIC) (06/15/22)**............ VMIG1/A1+ 4.050 05/01/97 1,200,000 1,200,000
New York City Municipal Water Finance Authority & Sewer
System Revenue, Series G (FGIC) (06/15/24)**................. VMIG1/A1+/AAA 3.950 05/01/97 1,375,000 1,375,000
New York State Dormitory Authority (Beverwyck, Inc. Project)
(LOC Banque Paribas) (07/01/25)**............................ VMIG1/A2 4.500 05/07/97 700,000 700,000
Port Authority of New York & New Jersey Cons. One Hundred
Third Series (MBIA) (12/15/97)............................... AAA/Aaa 3.900 12/15/97 1,000,000 1,001,170
-----------
TOTAL NEW YORK 7,676,170
-----------

NORTH CAROLINA - 4.2%
Lenoir County PCR TENR #60, Series 1983 (Texasgulf, Inc.
Project) (LOC Bankers Trust Co.) (12/01/03)**................ A1/NR 4.625 05/07/97 1,000,000 1,000,000
North Carolina Eastern Municipal Power Agency System
Revenue Bond (05/01/97)****.................................. P1/NR 3.400 05/01/97 3,000,000 3,000,000
North Carolina Eastern Municipal Power Agency System
Revenue Bond (05/06/97)****.................................. P1/NR 3.450 05/06/97 3,000,000 3,000,000
-----------
TOTAL NORTH CAROLINA 7,000,000
-----------

OHIO - 0.6%
Ohio State Student Loan Funding Corp., Cincinnati, OH,
Series A-2 (LOC Fleet Bank PLC)
(01/01/07)**@............................................... VMIG1/NR 4.550 05/07/97 900,000 900,000
-----------

OREGON - 1.8%
Oregon State Housing & County Services Department Mortgage
Revenue Single Family Mortgage (PG-Series K)
(12/11/97).................................................. MIG1/NR 3.650 12/11/97 3,000,000 3,000,000
-----------

PENNSYLVANIA - 7.5%
Berks County IDR (Sixth & Penn Street Project)
(LOC Meridian Bank) (11/23/03)**............................. VMIG1/NR 4.500 05/07/97 1,230,000 1,230,000
Delaware Valley Regional Financing (LOC Credit Suisse 1st
* Boston) (08/01/16)**....................................... VMIG1/A1+ 4.600 05/07/97 2,700,000 2,700,000
Pennsylvania Energy Development Authority, Series 1986,
Development Energy Revenue Bonds (Ebensburg Project)
(LOC Swiss Bank Corp.) (12/01/11)**@......................... Aa1/NR 4.500 05/07/97 1,350,000 1,350,000
Pennsylvania State TANS (6/30/97) (b).......................... MIG1/SP1+/F1+ 4.500 06/30/97 7,000,000 7,009,664
-----------
TOTAL PENNSYLVANIA 12,289,664
-----------

PUERTO RICO - 2.1%
Puerto Rico Commonwealth Tax Revenue Anticipation Notes
Series A (07/30/97).......................................... MIG1/SP1+ 4.000 07/30/97 3,500,000 3,504,830
-----------
</TABLE>

See accompanying notes to financial statements

<PAGE>

THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1997

<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- --------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
SOUTH CAROLINA - 0.6%
Charleston County South Carolina CTFS Partnership
Charleston Public Facilities Corp. (MBIA) (12/01/97)......... Aaa/AAA 4.100% 12/01/97 $ 965,000 $ 966,884
-----------

TENNESSEE - 1.0%
Clarksville Public Authority Pooled Financing, Series 1990
(MBIA) (SPA Credit Suisse) (07/01/13)**...................... VMIG1/A1+ 4.400 05/07/97 700,000 700,000
Tennessee Housing Development Agency
Homeownership PG - Issue 1 (01/01/28)***@.................... NR/A1+ 3.750 2/19/98 1,000,000 1,000,000
-----------
TOTAL TENNESSEE 1,700,000
-----------
TEXAS - 11.4%
Harris County HFC MFHR (Idlewood Park Project) (GTD New
England Mutual Life Insurance Co.) (06/01/05)**.............. NR/A1 4.650 05/07/97 2,750,000 2,750,000
North Texas Higher Education Authority, Inc., Student
Loan Revenue (LOC Student Loan Market) (03/01/05)**@......... Aaa/A1+ 4.600 05/07/97 2,500,000 2,500,000
Panhandle Plains Higher Education Authority, Inc., Student
Loan Revenue, Series A (LOC SLMA) (06/01/21)**@.............. VMIG1/NR 4.500 05/07/97 2,000,000 2,000,000
Panhandle Plains Higher Education Authority, Inc., Student
Loan Revenue, Series A (LOC SLMA) (06/01/25)**@.............. VMIG1/NR 4.500 05/07/97 4,300,000 4,300,000
Texas State Tax & Revenue Anticipation Notes
(08/29/97)*** (b)............................................ MIG1/SP1 4.750 08/29/97 7,200,000 7,227,303
-----------
TOTAL TEXAS 18,777,303
-----------

UTAH - 6.0%
Toole County Hazardous Waste Treatment Revenue
(Westinghouse Electric Corp. Project A)
(LOC-ABN AMRO Bank, NY) (06/01/20)****@...................... A1+/NR 3.350 05/02/97 3,000,000 3,000,000
Toole County Hazardous Waste Treatment Revenue
(Westinghouse Electric Corp. Project A) (06/01/20)****@...... A1+/NR 3.450 05/07/97 3,000,000 3,000,000
Toole County Hazardous Waste Treatment Revenue
(Westinghouse Electric Corp. Project A) (06/01/20)****@...... A1+/NR 3.500 06/02/97 3,000,000 3,000,000
Utah State Board Regents Student Loan Revenue, Series B
(11/01/00)**@................................................ VMIG1/A1+ 4.600 05/07/97 900,000 900,000
-----------
TOTAL UTAH 9,900,000
-----------

VIRGINIA - 2.6%
Alexandria IDA Resource Recovery Revenue, Series 1986 A
(Ogden Corp. Project) (LOC Swiss Bank) (12/01/16)**@......... VMIG1/A1+ 4.150 05/01/97 4,200,000 4,200,000
-----------

WASHINGTON - 1.8%
King County Washington Limited Tax GO
(LOC Bank of America NT & SA) (12/01/11)**................... VMIG1/A1+ 4.650 05/07/97 3,000,000 3,000,000
-----------
</TABLE>

See accompanying notes to financial statements

<PAGE>

THE TREASURER'S FUND
TAX EXEMPT MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1997

<TABLE>
<CAPTION>
CREDIT CURRENT MATURITY PRINCIPAL VALUE
RATINGS* COUPON DATE AMOUNT (NOTE 1A)
-------- ---------- ------ ------- ---------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
WISCONSIN - 11.0%
Milwaukee Wisconsin Revenue School Order Notes
Series B (08/21/97)***....................................... VMIG1/A1+ 4.250% 08/21/97 $3,000,000 $ 3,006,413
Wisconsin HFAR Bonds (DCNHS-St. Mary's Hospital)
Series 1986 (11/01/16)**..................................... VMIG1/A1+ 4.450 05/07/97 5,700,000 5,700,000
Wisconsin HFAR Bonds (DCNHS-St. Mary's Hospital)
Milwaukee & St. Mary's Hospital Ozaukee, Inc.)
Series 1992A (11/01/22)**.................................... VMIG1/A1+ 4.450 05/07/97 3,000,000 3,000,000
Wisconsin State Operating Notes (06/16/97)**(b)................ MIG1/SP1+/F1+ 4.500 06/16/97 6,300,000 6,305,554
-----------
TOTAL WISCONSIN 18,011,967
-----------
WYOMING - 5.2%
Lincoln County PCR (Exxon Project)
Series C (07/01/17)**........................................ P1/A1+ 4.150 05/01/97 1,000,000 1,000,000
Lincoln County Power Control Revenue (Pacificorp Project)
(LOC Union Bank of Switzerland) (01/01/16)****............... P1/A1+ 3.450 05/19/97 3,500,000 3,500,000
Platte County., WY Power Control Revenue Refunding Bonds
Series 1984A (07/01/14)****.................................. P1/NR 3.400 06/02/97 1,800,000 1,800,000
Platte County., WY Power Control Revenue Refunding Bonds
Series 1984A (07/01/14)****.................................. P1/NR 3.650 06/10/97 1,500,000 1,500,000
Platte County PCR Refunding Bonds (Tri-State Generator &
Transmission Project) (LOC Societe Generale (07/01/14)**..... Aa3/P1/NR 4.150 05/01/97 800,000 800,000
-----------
TOTAL WYOMING 8,600,000
-----------
TOTAL INVESTMENTS - 99.1% (COST 163,334,384)+ ........................................................................ $163,334,384
============
*,**,***,****,+,(b), @ See Footnotes to Portfolio
</TABLE>

See accompanying notes to financial statements

<PAGE>

THE TREASURER'S FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
APRIL 30, 1997

<TABLE>
<CAPTION>
YIELD TO
MATURITY
AT TIME OF MATURITY PRINCIPAL VALUE
PURCHASE DATE AMOUNT (NOTE 1A)
---------- ------- ---------- -----------

<S> <C> <C> <C> <C>
U.S. GOVERNMENT ISSUES - 53.6%
U.S. Treasury Bills++........................................................ 5.036% 05/01/97 $10,000,000 $10,000,000
U.S. Treasury Bills++........................................................ 5.228 06/12/97 5,000,000 4,970,308
U.S. Treasury Bills.......................................................... 5.197 07/31/97 5,000,000 4,936,047
U.S. Treasury Bills.......................................................... 5.276 08/07/97 6,000,000 5,916,210
U.S. Treasury Bills.......................................................... 5.429 08/14/97 10,000,000 9,846,438
U.S. Treasury Bills.......................................................... 5.391 08/14/97 5,000,000 4,923,729
U.S. Treasury Bills++........................................................ 5.667 03/05/98 5,000,000 4,773,706
U.S. Treasury Notes, 5.625%.................................................. 5.697 06/30/97 24,000,000 24,012,219
-----------
TOTAL U.S. GOVERNMENT ISSUES ....................................................................................... 69,378,657
-----------

REPURCHASE AGREEMENTS - 46.1%
Bear Stearns & Co., Inc. dated 04/30/97...................................... 5.370 05/01/97 18,608,139 18,608,139
(Proceeds at maturity $18,610,915)
collateralized by:
$915,000 U.S. Treasury Bill 08/07/97 vs. $902,062
$500,000 U.S. Treasury Bill 05/08/97 vs. $499,480
$17,670,000 U.S. Treasury Bill 06/05/97 vs. $17,583,240

Barclays de Zoete Wedd Securities, Inc. dated 04/30/97....................... 5.300 05/01/97 17,000,000 17,000,000
(Proceeds at maturity $17,002,503)
collateralized by:
$11,737,000 U.S. Treasury Bonds 12.50%, 08/15/14 vs. $17,000,000

Nomura Securities International Inc. dated 04/30/97.......................... 5.450 05/01/97 24,000,000 24,000,000
(Proceeds at maturity $24,003,633)
collateralized by:
$24,145,000 U.S. Treasury Notes 5.750%, 10/31/00 vs. $24,000,000

------------
TOTAL REPURCHASE AGREEMENTS ........................................................................................ 59,608,139
------------
TOTAL INVESTMENTS - 99.7% (COST 128,986,796)+ ...................................................................... $128,986,796
============
</TABLE>

+ See Footnotes to Portfolios
++ Securities on loan to Bear Stearns & Co.; collateralized by U.S. Government
securities at a market value of $22,352,591 as of April 30, 1997.

See accompanying notes to financial statement

9
<PAGE>

THE TREASURER'S FUND
FOOTNOTES TO PORTFOLIOS (UNAUDITED)

*CREDIT RATINGS GIVEN BY STANDARD AND POOR'S CORPORATION & MOODY'S INVESTORS
SERVICE INC.

STANDARD & POOR'S MOODY'S
- ----------------- ------------
A1 P1 Instrument of the highest quality.
AAA Aaa Instrument judged to be of the best quality
and carrying the smallest amount of
investment risk.
AA Aa Instrument judged to be of high quality by
all standards.
SP1 MIG1/VMIG1 Instrument judged to be of the best quality
with strong protection.
SP2 MIG2/VMIG2 Instrument judged to be of high quality with
ample protection.
NR NR Not Rated. In the opinion of the Investment
Advisor, instrument judged to be of
comparable investment quality to rated
securities which may be purchased by the
Portfolios.

(A) Rated D1 by Duff & Phelps, Inc. (highest quality). (unaudited)
(B) Rated F1 by Fitch Investors Service, Inc. (highest quality). (unaudited)

Items which possess the strongest investment attributes of their category
are given that letter rating followed by a number. Duff & Phelps, Inc., Fitch
Investors Service, Inc. and Standard & Poor's ratings may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
U.S. Government Issues have an assumed rating of AAA/Aaa.

ABBREVIATIONS USED IN THESE STATEMENTS:

ACES...........Adjustable Convertible Extendable Securities
AMBAC..........Insured as to principal and interest by the American
Municipal Bond Assurance Corp.
FGIC ..........Insured as to principal and interest by the Financial
Guaranty Insurance Corp.
FNMA...........Federal National Mortgage Association
GNMA...........Government National Mortgage Association
GO.............General Obligation
GTD ...........Guaranteed(1)
HFAR ..........Health Facilities Authority Revenue
HFC ...........Housing Finance Corporation
IDA ...........Industrial Development Authority
IDR ...........Industrial Development Revenue
LIQ............Liquidity Facility Agreement
LOC............Letter of Credit(1)
MBIA ..........Insured as to principal and interest by the Municipal
Bond Insurance Association
MFHR ..........Multi-Family Housing Revenue
PCR ...........Pollution Control Revenue
SLMA...........Student Loan Marketing Association
STRIPS ........Prestripped zero coupon bond that is a direct
obligation of the U.S. Treasury
SPA ...........Securities Purchase Agreement(1)
TANS...........Tax Anticipation Notes
TENR ..........Tax Exempt Note Rate

(1) Institutions shown in parenthesis have entered into credit support
agreements with the issuer.

(2) Institutions shown in parenthesis are the issuers of the participation
interests of those specific holdings.

(3) Coupon resets monthly. The interest rate is based upon one month of LIBOR.

** Variable/Floating Rate Demand Note. "Maturity Date" shown is next exercise
date of demand feature and "Yield to Maturity at Time of Purchase"/
"Current Coupon" is the rate in effect on April 30, 1997. Date in
parenthesis is the final maturity date of the issue.

*** Adjustable Rate Security. "Maturity Date" shown is next coupon reset date
and "Yield to Maturity at Time of Purchase" / "Current Coupon" is the rate
in effect on April 30, 1997. Date in parenthesis is the final maturity
date of the issue.

**** Tax-Free Commercial Paper. Date in parenthesis is the final maturity of an
issue which has been remarketed in short-term interest periods ending on
date shown in maturity date column.

+ Cost basis for book and tax purposes is substantially the same.

@ Subject to Alternative Minimum Tax.

INVESTMENT PERCENTAGES SHOWN ARE CALCULATED AS A PERCENTAGE OF NET ASSETS.

See accompanying notes to financial statement

<PAGE>

THE TREASURER'S FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1997

<TABLE>
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments, in securities, at value (identified cost--$252,337,140*,
$163,334,384, and $128,986,796*, respectively)............................... $252,337,140 $163,334,384 $128,986,796
Cash........................................................................... 126,720 289,977 90,864
Interest receivable............................................................ 98,313 1,475,242 460,155
Other assets................................................................... 7,261 6,238 16,500
------------ ------------ ------------
Total assets............................................................. 252,569,434 165,105,841 129,554,315
------------ ------------ ------------

LIABILITIES:
Dividend payable............................................................... 349,580 152,849 109,899
Advisory fee payable (note 2).................................................. 62,889 43,810 29,680
Administrative services fee payable ........................................... 20,259 14,113 9,561
Fund accounting and shareholder servicing fees payable (note 2)................ 27,494 13,211 9,240
Accrued expenses payable and other liabilities................................. 61,744 67,252 78,242
------------ ------------ ------------
Total liabilities........................................................ 521,966 291,235 236,622
------------ ------------ ------------
NET ASSETS .................................................................... $252,047,468 $164,814,606 $129,317,693
============ ============ ============

NET ASSETS CONSIST OF:
Shares of beneficial interest outstanding (par value of $0.001 per share);
2,000,000,000 shares authorized per Portfolio (note 3)....................... $ 252,115 $ 164,866 $ 129,318
Additional paid-in capital..................................................... 251,862,929 164,701,012 129,188,375
Undistributed net investment income............................................ -- 3,430 --
Distributions in excess of net investment income............................... (11,680) -- --
Accumulated net realized gain (loss) on investments............................ -- (54,702) --
Distribution in excess of net realized gains on investments.................... (55,896) -- --
------------ ------------ ------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES ................................... $252,047,468 $164,814,606 $129,317,693
============ ============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING ..................................... 252,115,044 164,865,878 129,317,693
============ ============ ============
NET ASSET VALUE PER SHARE OUTSTANDING ......................................... $1.00 $1.00 $1.00
===== ===== =====

* Includes Repurchase Agreements of $85,365,702 and $59,608,139 for the Domestic Prime Money Market Portfolio and U.S.
Treasury Money Market Portfolio, respectively.
</TABLE>

See accompanying notes to financial statement

11
<PAGE>

THE TREASURER'S FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ --------------
<S> <C> <C> <C>
INTEREST INCOME ............................................... $6,839,096 $2,923,496 $2,857,534
----------- ---------- ----------
EXPENSES:
Advisory (note 2) ........................................... 379,143 252,546 163,215
Administrative services (note 2)............................. 123,563 82,321 53,153
Shareholder services......................................... 45,676 17,970 12,024
Custody ..................................................... 35,381 6,223 9,562
Legal........................................................ 16,124 10,821 7,706
Fund accounting ............................................. 15,868 18,706 15,676
Auditing..................................................... 14,202 9,510 5,460
Directors' fees and expenses................................. 7,743 7,743 7,743
Registration................................................. 7,665 7,415 6,015
Reports to shareholders...................................... 5,931 4,003 2,523
Miscellaneous................................................ 8,241 21,523 43,851
----------- ---------- ----------
659,537 438,781 326,928
Less--Fund expenses waived..................................... (2,359) (819) (497)
----------- ---------- ----------
Total expenses ................................................ 657,178 437,962 326,431
----------- ---------- ----------
NET INVESTMENT INCOME ......................................... 6,181,918 2,485,534 2,531,103
NET REALIZED GAIN ON SECURITIES ............................... 22,928 -- 23,931
----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .......... $6,204,846 $2,485,534 $2,555,034
----------- ---------- ----------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)

<TABLE>
<CAPTION>
DOMESTIC PRIME TAX EXEMPT U.S. TREASURY
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
------------------------- -------------------------- ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1997 1996 1997 1996 1997 1996
----------- ------------ ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income.................. $ 6,181,918 $10,803,526 $ 2,485,534 $ 4,550,893 $ 2,531,103 $ 4,134,213
Net realized gain on securities....... 22,928 390,740 -- 11,161 23,931 30,689
------------ ------------ ------------ ----------- ------------ ------------
Net increase in net assets resulting
from operations....................... 6,204,846 11,194,266 2,485,534 4,562,054 2,555,034 4,164,902
------------ ------------ ------------ ----------- ------------ ------------
Distributions to shareholders:
Net investment income (note 1C) ...... (6,181,918) (10,803,526) (2,485,534) (4,550,893) (2,531,103) (4,134,213)
Net realized gain on securities ...... (202,344) (55,898) -- -- (23,931) (30,689)
------------ ------------ ------------ ----------- ------------ ------------
TOTAL DISTRIBUTIONS PAID TO SHAREHOLDERS (6,384,262) (10,859,424) (2,485,534) (4,550,893) (2,555,034) (4,164,902)
------------ ------------ ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
from capital share transactions
(note 3). 15,415,244 67,179,305 6,307,672 17,670,184 38,556,231 (4,072,838)
------------ ------------ ------------ ----------- ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 15,235,828 67,514,147 6,307,672 17,681,345 38,556,231 (4,072,838)
Net assets
Beginning of period................... 236,811,640 169,297,493 158,506,934 140,825,589 90,761,462 94,834,300
------------ ------------ ------------ ----------- ------------ ------------
End of period* ....................... $252,047,468 $236,811,640 $164,814,606 $158,506,934 $129,317,693 $ 90,761,462
============ ============ ============ ============ ============ ============

- --------------------------------------------------------------------------------
* Accumulated undistributed net investment income for the Tax Exempt Money
Market Portfolio is $3,430 for April 30, 1997 and October 31, 1996.
</TABLE>

See accompanying notes to financial statement

12
<PAGE>

THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1997

1. The Treasurer's Fund, Inc. (the "Fund") is an open-end, diversified
management investment company registered under the Investment Company Act of
1940, as amended, (the "Act"). The Fund currently consists of six separately
managed portfolios three of which are active: the U.S. Treasury Money Market
Portfolio, the Domestic Prime Money Market Portfolio and the Tax Exempt Money
Market Portfolio (collectively, the "Portfolios"). The following is a summary
of significant accounting policies consistently followed by the Fund in
preparation of its financial statements:

(A) The Portfolios value all portfolio securities by the amortized cost
method which approximates market value in accordance with Rule 2a-7
under the Investment Company Act of 1940, as amended.

(B) It is the Fund's policy to comply with the requirements of the
Internal Revenue Code (the "Code") applicable to regulated
investment companies and to distribute all of its "investment
company taxable income," as defined in the Code, and net capital
gains, if any, to its shareholders. Therefore, no Federal income tax
provision is required. The Fund intends to treat each Portfolio as a
separate entity taxable as a corporation for Federal income tax
purposes and to have each Portfolio qualify and elect to be taxed as
a "regulated investment company" under Subchapter M of the Internal
Revenue Code.

(C) Net investment income, including short-term capital gains, is
declared as dividends daily and paid monthly; however, if an
investor's shares are redeemed during a month, accrued but unpaid
dividends are paid with the redemption proceeds. Dividends are
payable to shareholders of record at the time of declaration.

(D) Investment transactions are recorded on trade date. Identified cost
of investments sold is used for both financial statement and Federal
income tax purposes. Interest income, including the amortization of
discount or premium, is recorded as earned. When-issued securities
are recorded on the date on which the priced transaction
confirmation is issued.

(E) Certain administrative expenses are common to, and allocated among,
the Portfolios. Such allocations are made on the basis of each
Portfolio's average net assets or other criteria directly affecting
the expenses.

(F) USE OF ESTIMATES. Estimates and assumptions are required to be made
regarding assets, liabilities, and changes in net assets resulting
from operations when financial statements are prepared. Changes in
the economic environment, financial markets and any other parameters
used in determining these estimates could cause actual results to
differ from these amounts.

2. The Fund retained Gabelli-O'Connor Fixed Income Mutual Funds Management Co.
("Gabelli-O'Connor") to act as Investment Advisor. Effective April 14, 1997,
Gabelli Fixed Income L.L.C., a newly created Maryland limited liability
company and a subsidiary of Gabelli Funds, Inc. ("Gabelli") became the
successor Investment Advisor to Gabelli-O'Connor. The Investment Advisor
supervises all aspects of the Fund's operations and provides investment
advice and portfolio management services to the Fund. Subject to the
supervision of the Fund's Board of Directors, the Advisor makes the Fund's
day-to-day investment decisions, arranges for the execution of portfolio
transactions and generally manages the Fund's investments. The Advisor also
provides supervisory personnel who are responsible for supervising the
performance of administrative services, accounting and related services, net
asset value and yield calculations, reports to and filings with regulatory
authorities and services relating to such functions.

As compensation for its services, the active Portfolios pay the Investment
Advisor a fee, computed and accrued daily and payable monthly, equal to 0.30%
per annum of each Portfolio's average daily net assets.

For the six months ended April 30, 1997, the Investment Advisor was entitled
to fees of $379,143, $252,546 and $163,215 from the Domestic Prime Money
Market Portfolio, the Tax Exempt Money Market Portfolio and the U.S. Treasury
Money Market Portfolio, respectively.

<PAGE>

THE TREASURER'S FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1997

Effective April 14, 1997, Gabelli assumed responsibility as Administrator
pursuant to an Administrative Services Agreement with each of the Portfolios,
where Gabelli provides all management and administrative services necessary
for the Fund, other than those provided by the Investment Advisor, subject to
the supervision of the Fund's Board of Directors. For the period April 15,
1997 to April 30, 1997, Gabelli was entitled to administrative fees of
$10,129, $7,056 and $4,780 from the Domestic Prime Money Market Portfolio,
the Tax Exempt Money Market Portfolio and the U.S. Treasury Money Market
Portfolio, respectively.

The Fund has adopted a distribution and service plan (the "Plan" ) pursuant
to Rule 12b-1 under the Investment Company Act of 1940 for each Portfolio of
the Fund. There are no fees or expenses chargeable to the Fund under the Plan
and the Fund's Board of Directors has adopted the Plan in case certain
expenses of the Fund might be considered to constitute indirect payment by
the Fund of distribution expenses. GOC Fund Distributors, Inc. (the
"Distributor") served as the exclusive Distributor of the shares of each
Portfolio pursuant to its Distribution Agreement with the Fund. Effective
April 14, 1997, Gabelli Fixed Income Distributors, Inc. became the successor
Distributor to GOC Fund Distributors, Inc. with similar terms as described
above.

3. At April 30, 1997, there were twenty billion shares of capital stock, having
a par value of one tenth of one cent ($0.001) per share, authorized. Each
Portfolio has been allocated two billion shares of the authorized capital
stock. The balance of eight billion shares of capital stock may be issued in
an existing or newly created class by resolution of the Board of Directors.
Transactions in capital stock shares at $1.00 per share were as follows:

4. Each Portfolio may engage in repurchase agreements, with respect to any
security in which that Portfolio is authorized to invest, with member banks
of the Federal Reserve System and with broker-dealers who are recognized as
primary dealers in U.S. government securities by the Federal Reserve Bank
of New York whose creditworthiness has been reviewed and found satisfactory
by the Fund's Board of Directors. The Portfolios will always receive
securities as collateral whose market value, including accrued interest,
will be at least equal to 100% of the dollar amount invested by the
Portfolio in each agreement, and the Portfolio will make payment for such
securities only upon physical delivery or upon evidence of book entry
transfer to the account of the custodian. 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 Portfolios
maintain the right to sell the underlying securities at market value and
may claim any resulting loss against the seller.

5. In the pursuit of the Fund's minimum credit risk investment policy, each
Portfolio maintains a diversified portfolio of money market instruments,
each of which matures or resets to par in less than 397 days from date of
purchase and is determined to represent minimal credit risk in accordance
with the policies and procedures approved by the Fund's Directors. The
ability of the issuer of the instruments to meet their obligations may be
affected by economic developments in a specific industry, region or state.

6. The Fund may lend its securities to broker-dealers and other institutional
investors. The Fund's policy is to receive collateral on each loan equal at
all times to the market value of the securities loan plus accrued interest.
The Fund may bear the risk of delay in receiving additional collateral or
in recovering the securities loaned or even a loss of rights in the
collateral should the borrower of the securities fail financially. The Fund
receives compensation for lending its securities in the form of fees or
through the reinvestment of collateral of any cash received as collateral.
The Fund also continues to receive interest on the securities loaned, and
any gain or loss in the market price of the securities loaned that may
occur during the term of the loan will be for the account of the Fund.

7. The Portfolios are permitted to enter into reverse repurchase agreements
for liquidity purposes or when it is able to purchase other securities
which will produce more income than the cost of the agreement. The
Portfolios may enter into reverse repurchase agreements only with those
member banks of the Federal Reserve System and broker-dealers who are
recognized as primary dealers in U.S. government securities by the Federal
Reserve Bank of New York and whose creditworthiness has been reviewed and
found satisfactory by the Fund's Board of Directors. When engaging in
reverse repurchase transactions, the Portfolios will maintain, in a
segregated account with its Custodian, securities equal in value to those
subject to the agreement.

8. At October 31, 1996, the Tax Exempt Money Market Portfolio had net capital
loss carryforwards for Federal income tax purposes of $53,141 with $2,775,
$1,391, $2,039, $7,802 and $39,134 expiring in 2003, 2002, 2001, 1998 and
1997, respectively.

See accompanying notes to financial statement

<PAGE>

THE TREASURER'S FUND

FINANCIAL HIGHLIGHTS (UNAUDITED)

Contained below is per share operating performance data for a share of
beneficial interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information has
been derived from information provided in the Portfolio's financial statements.

<TABLE>
<CAPTION>
DOMESTIC PRIME
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED ---------------------------------------------------------------------
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1995 1994 1993 1992
--------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year .... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Investment Operations:
Investment income--net ................. 0.026 0.049 0.054 0.035 0.028 0.038
Net realized gain (loss)
on investments....................... -- -- (0.002) -- -- --
-------- -------- -------- -------- -------- --------

Total from Investment Operations..... 0.026 0.049 0.052 0.035 0.028 0.038
-------- -------- -------- -------- -------- --------

Dividends from investment
income--net .......................... (0.026) (0.049) (0.054) (0.035) (0.028) (0.038)
Dividends from net realized
gain on investments.................. -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions ................. (0.026) (0.049) (0.054) (0.035) (0.028) (0.038)
-------- -------- -------- -------- -------- --------
Contributions from affiliate (a)....... -- -- 0.002 -- -- --
-------- -------- -------- -------- -------- --------
Net asset value, end of year........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Investment Return.................. 2.45%+ 5.12% 5.50% 3.56% 2.90% 3.82%
Ratios/Supplemental Data:
Ratio of expenses
to average net assets................ 0.52%*,** 0.53%* 0.52%* 0.54% 0.62% 0.54%
Ratio of interest expense to
average net assets................... -- 0.01% 0.02% 0.13% -- --
Ratio of net investment income to
average net assets .................. 4.89%** 4.93% 5.33% 3.49% 2.82% 3.82%
Decrease reflected in above expense
ratios due to undertakings by the
Advisor/Administrator ............... -- 0.01% 0.01% 0.01% -- 0.01%
Net Assets, end of
period (in thousands)............... $252,047 $236,812 $169,297 $143,744 $145,021 $169,357

- ----------
(a) During the year ended October 31, 1995, the Domestic Prime Money Market
Portfolio realized losses on the sale of certain securities. Pursuant to an
undertaking, losses in the amount of $262,913 were reimbursed to the Fund by
Gabelli-O'Connor.
+ Not annualized.
* Effective 1995, the ratios do not include a reduction of expenses for
custodian fee credits on cash balances maintained with the custodian.
Including such custodian fee credits, the expense ratios would have been
0.52%, 0.52% and 0.50% for the six months ended April 30, 1997 and for the
fiscal years ended October 31, 1996 and October 31, 1995, respectively.
** Annualized.

</TABLE>

See accompanying notes to financial statement

15
<PAGE>

THE TREASURER'S FUND

FINANCIAL HIGHLIGHTS (UNAUDITED)

<TABLE>
<CAPTION>
TAX EXEMPT
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED ---------------------------------------------------------------------
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1995 1994 1993 1992
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Investment Operations:
Investment income--net.................. 0.015 0.030 0.034 0.022 0.021 0.031
Net realized gain (loss)
on investments....................... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total from Investment Operations .... 0.015 0.030 0.034 0.022 0.021 0.031
------- ------- ------- ------- ------- -------
Distributions:
Dividends from investment
income--net........................... (0.015) (0.030) (0.034) (0.022) (0.021) (0.031)
------- ------- ------- ------- ------- -------
Total Distributions.................. (0.015) (0.030) (0.034) (0.022) (0.021) (0.031)
------- ------- ------- ------- ------- -------
Net asset value, end of year .......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total Investment Return ................. 1.48%+ 3.04% 3.42% 2.21% 2.16% 3.19%
Ratios/Supplemental Data:
Ratio of expenses to
average net assets................... 0.52%*,** 0.54%* 0.52%* 0.53% 0.57% 0.58%
Ratio of net investment income to
average net assets................... 2.95%** 3.00% 3.35% 2.18% 2.15% 3.10%
Decrease reflected in above expense
ratios due to undertakings by the
Advisor/Administrator................ -- -- 0.01% 0.01% -- 0.02%
Net Assets, end of period
(in thousands) ...................... $164,815 $158,507 $140,826 $133,951 $117,751 $95,751

- ----------
+ Not annualized.
* Effective 1995, the ratios do not include a reduction of expenses for
custodian fee credits on cash balances maintained with the custodian.
Including such custodian fee credits, the expense ratios would have been
0.50%, 0.52% and 0.50% for the six months ended April 30, 1997 and for the
fiscal years ended October 31, 1996 and October 31, 1995, respectively.
** Annualized.
</TABLE>

See accompanying notes to financial statement

<PAGE>

THE TREASURER'S FUND

FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
beneficial interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information has
been derived from information provided in the Portfolio's financial statements.

<TABLE>
<CAPTION>
U.S. TREASURY
MONEY MARKET PORTFOLIO
----------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED ----------------------------------------------------------------------
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1995 1994 1993 1992
--------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net ................. 0.221 0.047 0.051 0.033 0.026 0.034
Net realized gain (loss)
on investments....................... -- -- -- -- -- 0.002
------ ------ ------ ------ ------ ------
Total from Investment Operations.... 0.221 0.047 0.051 0.033 0.026 0.036
------ ------ ------ ------ ------ ------
Distributions:
Dividends from
investment income--net................ (0.221) (0.047) (0.051) (0.033) (0.026) (0.034)
Dividends from net realized
gain on investments.................. -- -- -- -- -- (0.002)
------ ------ ------ ------ ------ ------
Total Distributions ................. (0.221) (0.047) (0.051) (0.033) (0.026) (0.036)
------ ------ ------ ------ ------ ------
Net asset value, end of year .......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
====== ====== ====== ====== ====== ======
Total Investment Return ................. 2.36%+ 4.83% 5.27% 3.31% 2.60% 3.68%
Ratios/Supplemental Data:
Ratio of expenses to average
net assets........................... 0.60%*,** 0.63%* 0.56%* 0.49% 0.47% 0.45%
Ratio of net investment income
to average net assets .............. 4.65%** 4.70% 5.10% 3.07% 2.55% 3.38%
Decrease reflected in above expense
ratios due to undertakings by the
Advisor/Administrator................ -- -- -- -- -- 0.01%
Net Assets, end of
period (in thousands)................ $129,318 $90,761 $94,834 $138,205 $224,071 $254,899

- ----------
+ Not annualized.
* Effective 1995, the ratios do not include a reduction of expenses for
custodian fee credits on cash balances maintained with the custodian.
Including such custodian fee credits, the expense ratios would have been
0.58%, 0.60% and 0.54% for the six months ended April 30, 1997 and for the
fiscal year ended October 31, 1996 and October 31, 1995, respectively.
** Annualized.
</TABLE>

See accompanying notes to financial statements

<PAGE>

THE TREASURER'S FUND

BOARD OF DIRECTORS

FELIX J. CHRISTIANA (Retired) Senior Vice President, Dollar Dry
Dock Savings Bank

ANTHONY J. COLAVITA Attorney-at-Law, Anthony J. Colavita, P.C.

RICHARD N. DANIEL Chairman and Chief Executive Officer, Handy &
Harman

ANTHONIE C. VAN EKRIS Managing Director, BALMAC International, Inc.

MARY E. HAUCK (Retired) Senior Portfolio Manager, Gabelli-
O'Connor Fixed Income
Mutual Fund Management Co.

ROBERT C. KOLODNY, M.D. Physician, author and lecturer, General
Partner of KBS Partnership

THOMAS E. O'CONNOR Consultant, Gabelli Fixed Income L.L.C.

KARL OTTO POHL Former President, Deutsche Bundesbank

ANTHONY R. PUSTORINO Certified Public Accountant; Professor, Pace
University

WERNER J. ROEDER, MD Director of Surgery, Lawrence Hospital

- --------------------------------------------------------------------------------

OFFICERS

RONALD S. EAKER President and Chief Investment Officer

HENLEY L. SMITH Vice President and Investment Officer

BRUCE N. ALPERT Vice President

GEORGETTE HORTON Vice President

LISA LING Vice President

JUDITH A. FABRIZI Secretary, Treasurer and Investment Officer