GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General
California Municipal Bond Fund, Inc. for the six-month period ended March 31,
1998. Your Fund produced a total return for this period, including share
price changes and dividend income generated, of 3.84%* and an annualized
tax-free distribution rate per share of 5.00%.**
The Economy
The United States economy is well on the track to its eighth
consecutive year of expansion. Low interest rates, restrained inflation and
plentiful jobs have driven measures of consumer confidence to record levels.
Personal income has grown strongly over the reporting period and consumer
spending, after a sluggish holiday season, has picked up sharply this year.
The production side of the economy has remained strong as well, although
signs of leveling off were seen early in the year, perhaps due to the economic
problems in Asia. The first effects of the Asian economic crisis were felt
at the end of last year when after-tax corporate profits fell in the fourth
quarter, the first decline since the third quarter of 1996. Balance of Trade
figures for January (the latest data available) provided additional evidence
that the economic difficulties in Asia may be affecting the U.S. economy.
The Federal Reserve Board expects that a reduction in demand for U.S.
exports will result from turmoil in Asia and dampen our domestic economic
growth as a result. Currency devaluations throughout Asia, in turn, have made
imports into the United States less expensive. Cheaper imports and waning
demand for U.S. exports should place additional downward pressure on domestic
prices, helping further to control inflation. The year-long decline in oil
prices has also helped. A restrained rate of inflation, in turn, would ease
some of the strains on the labor market, and help keep labor costs under
control. The upward pressure on wages has been a paramount concern of the Fed
because of the risk it poses for rekindling inflation. Wage costs have been
rising at about 4% over the reporting period, a rate that has significantly
outpaced inflation. New job creation has been strong over the reporting
period with the unemployment rate remaining at or near 25-year lows. Yet
inflation has stayed tame. The Consumer Price Index has risen 1.6% over the
past 12 months and a broader measure of the cost of living, the Gross
Domestic Product Price Deflator, grew at a 1.4% rate for the last two
quarters of last year. The Producer Price Index was in decline over the
reporting period.
Restrained inflation has kept the Fed from increasing interest rates.
The last increase in short-term rates came in March 1997 when the target rate
for Federal Funds was raised by one quarter of a percent to 5.5%. (The
Federal Funds rate is the rate of interest that banks charge one another for
overnight loans.)
Low interest rates have provided a strong fundamental underpinning for
interest rate-sensitive sectors of the economy such as housing. In this case,
the Asian crisis has actually proven a stimulus to consumer spending since
international bond investors have sought the safety of U.S. Government
securities, causing interest rates to fall. This reduction in borrowing costs
has spurred mortgage refinancing, thus giving consumers additional spending
power. Mortgage rates have been at levels not seen since the 1960s. The
housing market, a critical segment of the economy, has responded accordingly.
New housing starts rose to their highest annual level in over ten years,
while resale rates of existing homes set records during the reporting period.
Overall spending on construction, both residential and commercial, has been
solid.
So far, the economy has remained remarkably robust and inflation-free.
We are sensitive to the longevity of this extraordinary economic advance and
are alert to evidence of a potential reversal in direction or an upsurge in
inflation.
Market Environment
The market environment for bonds has been very constructive. During the
last six months, yields on long-term, high grade tax-exempt bonds have
declined by over one-quarter of a percentage point. During this same time,
U.S. Treasury bond yields fell a bit further. Certainly, it has been the
uncertain impact of the Asian financial crisis which has kept the Fed from
pushing rates higher despite strong domestic economic data. Spurred by this
drop in rates, the issuance of new municipal securities surged during the
last several months. In fact, the volume of new issuance last year rose 20%
over the previous year, marking 1997 as one of the most prolific years of
issuance in history. So far, 1998 is on course to eclipse last year's pace. A
record $68 billion of new tax-exempt debt was issued during the first quarter
of 1998. The relatively minor correction to lower prices in recent weeks is
reflective of the supply build-up.
We believe that it is still too early to draw any conclusions regarding
how much the Asian crisis will impact the U.S. economy. Until a clearer
picture emerges from Asia, we believe investors will continue to find fixed
income investments attractive.
The fixed-income markets are now in the middle of what has historically
been a time of year when prices weaken. March and April are generally large
debt issuance months in all markets. Based on past experience, it is expected
that bonds will lose some ground: however, for the reasons cited, we believe
that the current environment supports an outlook for steady monetary policy
and well-anchored interest rates. As long as inflation growth remains low and
the pace of consumer demand cools somewhat this spring, any setback to bonds
should not be prolonged.
Portfolio Overview
As discussed in previous communications to shareholders, in addition to
striving to maximize tax-exempt income (consistent with the Fund's other
objectives), the Fund strives to own securities that bear the best
characteristics and potential for performance maximization in both up and
down markets. Because the underlying characteristics of municipal bonds are
static (coupon, maturity, time until optional call, and quality rating), the
portfolio manager needs to make adjustments in response to a number of
dynamic factors that can affect performance, such as anticipated interest
rate moves.
Quality spreads (the yield differential between the higher and lower
quality bonds) continue to narrow. While there are many attributable reasons,
the factor most cited is the rising percentage of the highest grade (AAA
rated) insured bonds. Today, half of all new municipal bond issuance comes to
market as insured. The dearth of higher yielding bonds coupled with strong
investor demand has driven quality spreads to new lows.
California's economic growth is expected to continue, albeit at a more
moderate pace. Potential complications from Asia, a major trading partner,
are an uncertainty. The gains achieved by the State over the past several
years have allowed the financial picture to improve dramatically, as
evidenced by strong employment and personal income increases. We have not
altered our generally positive outlook.
Looking forward, our focus will continue to be on owning the optimal
securities that meet our investment criteria. The large slate of new issues
scheduled for sale over the next several weeks makes us cautious near-term,
but as long as the economic data don't surprise negatively, this could prove
to be a good buying opportunity. The market has not made any significant
moves in recent weeks. It is likely that this condition could persist going
forward until a clearer picture of the Asian impact emerges.
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1998
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 capital gain
distributions. Some income may be subject to the Federal Alternative Minimum
Tax (AMT) for certain shareholders.
<TABLE>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments-100.0% Amount Value
______________ ____________
<S> <C> <C>
ABAG Finance Corp., COP (ABAG XXIV) 6.90%, 4/1/2012......................... $ 3,500,000 $ 3,700,865
Alameda County, COP (Various Financing Projects)
6%, 9/1/2021 (Insured; MBIA, LOC; The Fuji Bank) (a)...................... 4,940,000 5,351,601
Allan Hancock Joint Community College District, COP, Refunding
7.625%, 10/1/2005......................................................... 1,055,000 1,164,614
Anaheim Public Financing Authority, Tax Allocation Revenue
6.45%, 12/28/2018 (Insured; MBIA)......................................... 6,000,000 6,783,660
Beaumont Unified School District, COP (Capital Improvement Project)
7.70%, 1/1/2021 (Prerefunded 1/1/2001) (b)................................ 1,100,000 1,222,331
California, Veterans 5.45%, 12/1/2025....................................... 5,000,000 5,013,450
California Educational Facilities Authority, Revenue
(Chapman College) 7.50%, 1/1/2018 (Prerefunded 1/1/2001) (b).............. 1,760,000 1,949,094
California Health Facilities Financing Authority, Revenue:
(HELP Group)
7%, 8/1/2021 (Insured; California Health Facilities Construction Loan Program) 1,800,000 1,955,286
(Pomona Valley Hospital Medical Center)
7.375%, 1/1/2014 (Prerefunded 1/1/2000) (b)............................. 750,000 808,627
(Walden House) 6.85%, 3/1/2022............................................ 3,225,000 3,513,122
California Housing Finance Agency:
Home Mortgage Revenue:
6%, 8/1/2016 (Insured; MBIA)............................................ 2,000,000 2,114,100
6.375%, 8/1/2027 ....................................................... 2,250,000 2,394,270
5.60%, 8/1/2029 (Insured; MBIA)......................................... 4,350,000 4,467,146
7.50%, 8/1/2029......................................................... 1,065,000 1,106,269
7.60%, 8/1/2030......................................................... 1,405,000 1,481,039
7.70%, 8/1/2030......................................................... 765,000 800,511
Multi-Family Housing Revenue:
6.15%, 8/1/2022 (Insured; AMBAC)........................................ 3,850,000 4,054,242
6.05%, 8/1/2038 (Insured; MBIA)......................................... 2,500,000 2,586,125
California Pollution Control Financing Authority, PCR, Refunding
(San Diego Gas and Electric) 5.90%, 6/1/2014 (Insured; MBIA) ............. 9,000,000 10,049,850
California Public Works Board, LR, Refunding
(University of California Projects) 5.50%, 6/1/2010....................... 5,000,000 5,388,750
California Statewide Communities Development Authority:
COP, Health Facilities Revenue, Refunding (Barton Memorial Hospital)
6.50%, 12/1/2009 (LOC; Banque Nationale De Paris) (a)................... 1,600,000 1,748,160
Special Facilities Lease Revenue (United Airlines, Inc.):
5.70%, 10/1/2033........................................................ 3,100,000 3,164,263
5.625%, 10/1/2034....................................................... 2,895,000 2,935,385
Chico Public Financing Authority, Revenue
(Chico Municipal Airport and Central Chico Redevelopment Project)
7.40%, 4/1/2021 (Prerefunded 4/1/2000) (b)................................ 2,410,000 2,616,633
Commerce Joint Powers Financing Authority, Revenue, Multiple Project Loans
8%, 3/1/2022.............................................................. 2,395,000 2,585,618
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
Contra Costa County, Mortgage Revenue, Refunding (Cedar Pointe)
6.15%, 9/1/2025 (Insured; FHA)............................................ $ 2,955,000 $ 3,088,921
Del Mar Race Track Authority, Revenue, Refunding 6.20%, 8/15/2011........... 2,000,000 2,175,920
Dry Creek Joint School District, Special Tax
(Community Facilities District Number 1)
7.25%, 9/1/2011 (Insured; FSA, Prerefunded 9/1/2000) (b).................. 1,000,000 1,097,450
Duarte, COP (City of Hope Medical Center) 6%, 4/1/2008...................... 4,070,000 4,307,891
Fontana Public Financing Authority, Tax Allocation Revenue, Refunding
(North Fontana Redevelopment Project) 7.25%, 9/1/2020..................... 2,000,000 2,124,840
Fontana Redevelopment Agency, Tax Allocation, Refunding
(Jurupa Hills Redevelopment Project):
5.50%, 10/1/2019........................................................ 2,000,000 2,013,560
5.50%, 10/1/2027........................................................ 5,000,000 5,033,900
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue:
6%, 1/1/2034.............................................................. 4,955,000 4,654,331
5%, 1/1/2035.............................................................. 5,000,000 5,256,350
Fresno County Transportation Authority, Sales Tax Revenue
5.25%, 4/1/2007 (Insured; AMBAC).......................................... 5,315,000 5,676,261
Fresno Unified School District, COP (Phase VI Project)
7.20%, 5/1/2011 (Prerefunded 5/1/2001) (b)................................ 4,250,000 4,710,487
Hollister Redevelopment Agency, Tax Allocation
(Hollister Community Development Project)
7.55%, 10/1/2013 (Prerefunded 10/1/1999) (b).............................. 1,000,000 1,074,230
Inglewood, HR (Daniel Freeman Hospital)
6.75%, 5/1/2013 (Prerefunded 5/1/2001) (b)................................ 2,000,000 2,192,080
Loma Linda, HR (Loma Linda University Medical Center Project)
6%, 12/1/2023............................................................. 5,000,000 5,256,300
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue
Refunding 6%, 7/1/2026 (Insured; MBIA).................................... 5,000,000 5,413,300
Madera County, COP (Valley Childrens Hospital):
6.25%, 3/15/2007 (Insured; MBIA) ......................................... 2,545,000 2,886,310
6.50%, 3/15/2008 (Insured; MBIA) ......................................... 3,165,000 3,680,800
Monterey County, COP (Natividad Medical Center Improvement):
4.75%, 8/1/2020 (Insured; MBIA)........................................... 3,680,000 3,439,438
4.75%, 8/1/2027 (Insured; MBIA)........................................... 5,650,000 5,261,111
M-S-R Public Power Agency, Power Revenue, Refunding
(San Juan Project) 5.90%, 7/1/2020........................................ 7,000,000 7,026,460
Newhall Elementary and Castaic Union School Districts, COP
(School Improvement Project) 7.70%, 3/1/2011 (Prerefunded 3/1/2001) (b)... 2,695,000 2,964,096
Northern California Power Agency, Public Power Revenue
(Hydroelectric Project Number 1):
7.15%, 7/1/2024......................................................... 5,295,000 5,438,283
Refunding 6.30%, 7/1/2018 (Insured; MBIA)............................... 20,400,000 23,770,896
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
Orange County:
COP:
(Juvenile Justice Center) 7.625%, 6/1/2019 (Prerefunded 6/1/1999) (b)... $ 2,500,000 $ 2,659,500
Water District Revenue, Refunding 5%, 8/15/2014 (Insured; MBIA)......... 2,000,000 1,997,660
Special Tax (Community Facilities District Number 87-3)
7.80%, 8/15/2015 (Prerefunded 8/15/2000) (b)............................ 1,500,000 1,657,620
Otay Municipal Water District (Improvement District Number 27) 6.70%, 9/1/2022 2,000,000 2,149,620
Port Oakland, Special Facilities Revenue (Mitsui O.S.K. Lines Limited)
6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (a)....................... 3,000,000 3,218,130
Redwood City Elementary School District 5%, 8/1/2015 (Insured; FGIC)........ 3,875,000 3,928,708
Richmond Joint Powers Financing Authority, Revenue
7.25%, 5/15/2013 (Prerefunded 5/15/2000) (b).............................. 2,000,000 2,172,400
Riverside County Asset Leasing Corporation, Leasehold Revenue
(Riverside County Hospital Project) Zero Coupon, 6/1/2021 (Insured; MBIA). 4,050,000 1,199,489
Sacramento County, Special Tax (Community Facilities District Number 1):
8.25%, 12/1/2020 (Prerefunded 12/1/2000) (b).............................. 5,610,000 6,311,979
Refunding 5.70%, 12/1/2020................................................ 1,250,000 1,239,050
San Bernardino, Health Care Systems Revenue (Sisters of Charity)
7%, 7/1/2021 (Prerefunded 7/1/2001) (b)................................... 2,000,000 2,211,300
San Francisco City and County Airports Commission, International Airport
Revenue:
5.70%, 5/1/2026 (Insured; MBIA)........................................... 6,765,000 7,065,298
5.90%, 5/1/2026........................................................... 9,385,000 9,883,062
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
(Junior Lien) Zero Coupon, 1/1/2010....................................... 5,000,000 2,878,500
San Marcos Public Facilities Authority, Revenue, Refunding
(Public Improvement-Civic Center) 6.20%, 8/1/2022......................... 3,000,000 3,099,540
San Marcos Unified School District
(School Facilities Improvement District Number 1)
5.80%, 11/1/2014 (Insured; AMBAC)......................................... 3,540,000 3,837,643
Santa Cruz County Redevelopment Agency, Tax Allocation
(Subordinated-Live Oak/Soquel Community Improvement) 5.625%, 9/1/2022..... 3,335,000 3,461,530
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (c) 997,866 169,637
Southern California Home Finance Authority, SFMR
6.90%, 10/1/2024 (Collateralized: FNMA and GNMA).......................... 1,635,000 1,725,988
Southern California Public Power Authority, Power Project Revenue
(Multiple Projects) 6.75%, 7/1/2011 (Insured; FSA)........................ 3,750,000 4,511,775
Stockton, Health Facilities Revenue, Refunding (Dameron Hospital Association)
5.70%, 12/1/2014.......................................................... 1,000,000 1,022,160
Tehachapi Unified School District, COP (Tompkins Elementary School Project)
7.80%, 2/1/2021 (Prerefunded 2/1/2001) (b)................................ 1,000,000 1,104,750
Tracy Area Public Facilities Financing Agency, Special Tax, Refunding
(Community Facilities District Number 87-1) 5.875%, 10/1/2013 (Insured; MBIA) 7,000,000 7,584,920
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
Turlock, COP, Health Facilities Revenue, Refunding
(Emanuel Medical Center, Inc.) 5.75%, 10/15/2023.......................... $ 6,000,000 $ 6,154,620
West Covina Redevelopment Agency, Special Tax, Refunding
(Community Facilities District-Fashion Plaza):
6%, 9/1/2017............................................................ 6,000,000 6,589,860
6%, 9/1/2022............................................................ 8,325,000 9,215,026
Yolo County Housing Authority, Mortgage Revenue (Walnut Park Apartments)
7.20%, 8/1/2033 (Insured; FHA)............................................ 4,150,000 4,413,691
_____________
TOTAL INVESTMENTS (cost $271,029,456)....................................... $288,961,682
=============
</TABLE>
<TABLE>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation HR Hospital Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company LR Lease Revenue
FHA Federal Housing Administration MBIA Municipal Bond Investors Assurance
FNMA Federal National Mortgage Association Insurance Corporation
FSA Financial Security Assurance PCR Pollution Control Revenue
GNMA Government National Mortgage Association SFMR Single Family Mortgage Revenue
Summary of Combined Ratings (Unaudited)
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
_______ ________ ________________ __________________
AAA Aaa AAA 43.6%
AA Aa AA 5.1
A A A 23.7
BBB Baa BBB 19.6
D N/A D .1
Not Rated (e) Not Rated (e) Not Rated (e) 7.9
______
100.0%
======
Notes to Statement of Investments:
(a) Secured by letters of credit.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(c) Non-income producing security; interest payments in default.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) 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.
(f) At March 31, 1998, 32.0% of the Fund's net assets are insured by
MBIA.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998 (UNAUDITED)
Cost Value
______________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $271,029,456 $288,961,682
Interest receivable........................ 4,342,975
Prepaid expenses .......................... 42,664
_____________
293,347,321
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 154,245
Payable for shares of Common Stock redeemed 244,271
Accrued expenses........................... 173,370
_____________
571,886
_____________
NET ASSETS.................................................................. $292,775,435
=============
REPRESENTED BY: Paid-in capital............................ $272,763,858
Accumulated undistributed investment income-net......... 49,659
Accumulated net realized gain (loss) on investments 2,029,692
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4....................... 17,932,226
_____________
NET ASSETS ................................................................. $292,775,435
=============
SHARES OUTSTANDING
(500 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED)............. 21,504,276
NET ASSET VALUE, offering and redemption price per share-Note 3(d) ......... $13.61
=============
SEE NOTES TO FINANCIAL STATEMENTS.
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1998 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $ 8,329,437
EXPENSES: Management fee-Note 3(a)................... $ 878,228
Shareholder servicing costs-Note 3(b)...... 159,928
Directors' fees and expenses-Note 3(c)..... 19,960
Professional fees.......................... 18,383
Custodian fees............................. 14,967
Registration fees.......................... 9,966
Prospectus and shareholders' reports....... 5,516
Loan commitment fees-Note 2................ 685
Miscellaneous.............................. 9,740
____________
Total Expenses......................... 1,117,373
____________
INVESTMENT INCOME-NET....................................................... 7,212,064
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 2,025,136
Net unrealized appreciation (depreciation) on investments 1,881,160
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 3,906,296
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $11,118,360
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1998 Year Ended
(Unaudited) September 30, 1997
________________ ____________________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 7,212,064 $ 15,118,128
Net realized gain (loss) on investments............................. 2,025,136 1,593,884
Net unrealized appreciation (depreciation) on investments........... 1,881,160 7,392,293
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations... 11,118,360 24,104,305
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (7,358,433) (15,349,099)
Net realized gain on investments.................................... (1,543,915) (5,388,593)
_____________ _____________
Total Dividends................................................... (8,902,348) (20,737,692)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 21,771,744 51,850,255
Dividends reinvested................................................ 6,206,954 14,541,143
Cost of shares redeemed............................................. (28,964,289) (75,010,729)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions. (985,591) (8,619,331)
_____________ _____________
Total Increase (Decrease) in Net Assets......................... 1,230,421 (5,252,718)
NET ASSETS:
Beginning of Period................................................. 291,545,014 296,797,732
_____________ _____________
End of Period....................................................... $292,775,435 $291,545,014
============= =============
UNDISTRIBUTED INVESTMENT INCOME-NET................................... $ 49,659 $ 196,028
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 1,597,618 3,898,171
Shares issued for dividends reinvested.............................. 456,093 1,091,458
Shares redeemed..................................................... (2,128,169) (5,636,312)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding..................... (74,458) (646,683)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL CALIFORNIA 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.
Six Months Ended
March 31, 1998 Year Ended September 30,
____________________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.51 $13.35 $13.30 $12.90 $14.36 $13.33
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income-net................. .33 .69 .70 .73 .78 .82
Net realized and unrealized gain (loss)
on investments...................... .18 .41 .19 .48 (1.40) 1.11
______ ______ ______ ______ ______ ______
Total from Investment Operations...... .51 1.10 .89 1.21 (.62) 1.93
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.. (.34) (.70) (.68) (.73) (.78) (.82)
Dividends from net realized gain on investments (.07) (.24) (.16) (.08) (.06) (.08)
______ ______ ______ ______ ______ ______
Total Distributions................... (.41) (.94) (.84) (.81) (.84) (.90)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $13.61 $13.51 $13.35 $13.30 $12.90 $14.36
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................... 7.70%(1) 8.56% 6.85% 9.82% (4.43%) 15.04%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . .76%(1) .76% .76% .76% .76% .64%
Ratio of net investment income
to average net assets............... 4.93%(1) 5.15% 5.25% 5.66% 5.72% 5.96%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - - - - - .11%
Portfolio Turnover Rate............... 37.38%(2) 90.03% 164.93% 83.31% 29.74% 30.20%
Net Assets, end of period (000's Omitted) $292,775 $291,545 $269,798 $317,835 $347,063 $456,429
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
General California 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 and State of California personal
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. is the distributor of the Fund's shares, which are sold to the
public without a sales charge.
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 CALIFORNIA 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 is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
March 31, 1998, the Fund did not borrow under the Facility.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management 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.
(b) Under the Shareholder Services Plan, the Fund reimburses Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, an amount not
to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended March 31, 1998, the Fund was charged $97,304 pursuant
to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended March 31, 1998, the Fund was charged $45,869 pursuant to the
transfer agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A .10% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through the 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 March
31, 1998, redemption fees amounted to $1,367.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1998
amounted to $108,869,345 and $107,555,475, respectively.
At March 31, 1998, accumulated net unrealized appreciation on investments
was $17,932,226, consisting of $19,215,300 gross unrealized appreciation and
$1,283,074 gross unrealized depreciation.
At March 31, 1998, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
Registration Mark
[Dreyfus lion "d" logo]
GENERAL CALIFORNIA
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. 131SA983
Registration Mark
[Dreyfus logo]
General California
Municipal Bond
Fund, Inc.
Semi-Annual
Report
March 31, 1998
