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<PAGE> PAGE 2
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<PAGE> PAGE 4
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SIGNATURE GRACE C. TORRES
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000856715
<NAME> PRUDENTIAL SPECIAL MONEY MARKET FUND, INC.
<SERIES>
<NUMBER> 001
<NAME> PRUDENTIAL SPECIAL MONEY MARKET FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 244,490,587
<RECEIVABLES> 19,056,776
<ASSETS-OTHER> 179,160
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
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<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
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<SHARES-COMMON-STOCK> 261,856,127
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<NET-ASSETS> (525,024,239)
<DIVIDEND-INCOME> 0
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<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> 14,513,369
<REALIZED-GAINS-CURRENT> 11,538
<APPREC-INCREASE-CURRENT> 0
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (14,524,907)
<NUMBER-OF-SHARES-SOLD> 2,755,575,802
<NUMBER-OF-SHARES-REDEEMED> (2,768,786,005)
<SHARES-REINVESTED> 11,898,218
<NET-CHANGE-IN-ASSETS> (1,311,985)
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</TABLE>
February 25, 1997
Mr. Richard A. Redeker, President
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, New Jersey 07102-4072
Dear Mr. Redeker:
This is to confirm that the client-
auditor relationship between Deloitte
& Touche llp and the following
Prudential Mutual Funds has been
terminated:
The BlackRock Government Income
Trust
Global Utility Fund, Inc.
Prudential Allocation Fund
Prudential California Municipal
Fund
Prudential Distressed Securities
Fund, Inc.
Prudential Diversified Bond Fund,
Inc.
Prudential Dryden Fund
Prudential Equity Income Fund
Prudential Europe Growth Fund,
Inc.
Prudential Global Limited
Maturity Fund, Inc.
Prudential Institutional
Liquidity Portfolio, Inc.
Prudential Jennison Series Fund,
Inc.
Prudential MoneyMart Assets, Inc.
Prudential Multi-Sector Fund,
Inc.
Prudential Municipal Bond Fund
Prudential Municipal Series Fund
Prudential Pacific Growth Fund,
Inc.
Prudential Special Money Market
Fund, Inc.
Prudential Structured Maturity
Fund, Inc.
Prudential World Fund, Inc.
The Global Total Return Fund,
Inc.
The Target Portfolio Trust
Yours very truly,
DELOITTE & TOUCHE LLP
New York, New York
cc: Office of the Chief Accountant
SECPS Letter File
Securities and Exchange
Commission
Mail Stop 9-5
450 5th Street, N.W.
Washington, D.C. 20549
April 16, 1997
Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Dear Sirs:
We have read and agree with the comments
contained in the attached letter dated
April 16, 1997.
Yours truly,
DELOITTE & TOUCHE LLP
New York, New York
April 16, 1997
Securities and Exchange
Commission
450 Fifth Street, N.W.
Washington, DC 20549
RE: Funds managed or
administered by Prudential
Mutual Fund
Management LLC (the
"Funds")
Gentlemen:
At meetings held between
February 18 and 20, 1997, the
Board of Directors of the
Funds (see attached exhibit)
approved the engagement of
Price Waterhouse LLP as their
independent auditors for their
fiscal years ending after
February 28, 1997 to replace
the firm of Deloitte & Touche
LLP effective March 1, 1997.
The reports of Deloitte &
Touche LLP on the Funds'
financial statements for the
past two fiscal years did not
contain an adverse opinion or
a disclaimer of opinion and
were not qualified or modified
as to uncertainty, audit
scope, or accounting
principles.
In connection with the audits
of the Funds' financial
statements for each of the
prior two fiscal years and in
the subsequent interim period,
there were no disagreements
with Deloitte & Touche LLP on
any matters of accounting
principles or practices,
financial statement
disclosure, or auditing scope
and procedures which, if not
resolved to the satisfaction
of Deloitte & Touche LLP,
would have caused Deloitte &
Touche LLP to make reference
to the matter in their report.
The Funds have requested
Deloitte & Touche LLP to
furnish them a letter
addressed to the Commission
stating whether they agree
with the above statements. A
copy of that letter, dated
April 16, 1997 is attached
hereto.
Sincerely,
Eugene S. Stark
Grace Torres
Treasurer
Treasurer
ESS/rr
\Gen-SECLtrPW-4-15-97.doc
Exhibit
Board of N
Fund Director e T
Meeting x r
Date t e
F a
i s
s u
c r
a e
l r
Y
e
a
r
E
n
d
The BlackRock Government 2 6 Eugene S.
Income Trust / / Stark
1 3
8 0
/ /
9 9
7 7
Global Utility Fund, Inc. 2 9 Grace
/ / Torres
1 3
8 0
/ /
9 9
7 7
Prudential Allocation Fund 2 7 Grace
/ / Torres
1 3
9 1
/ /
9 9
7 7
Prudential California 2 8 Eugene S.
Municipal Fund / / Stark
2 3
0 1
/ /
9 9
7 7
Prudential Distressed 2 1 Grace
Securities Fund, Inc. / 1 Torres
1 /
9 3
/ 0
9 /
7 9
7
Prudential Diversified 2 1 Eugene S.
Bond Fund, Inc. / 2 Stark
2 /
0 3
/ 1
9 /
7 9
7
Prudential Dryden Fund 2 9 Eugene S.
/ / Stark
1 3
9 0
/ /
9 9
7 7
Prudential Equity Income 2 1 Grace
Fund / 0 Torres
1 /
9 3
/ 1
9 /
7 9
7
Prudential Europe Growth 2 4 Grace
Fund, Inc. / / Torres
2 3
1 0
/ /
9 9
7 7
Prudential Global Limited 2 1 Grace
Maturity Fund, Inc. / 0 Torres
1 /
9 3
/ 1
9 /
7 9
7
Prudential Government 2 2 Eugene S.
Income Fund, Inc. / / Stark
2 2
0 8
/ /
9 9
7 8
Prudential Institutional 2 3 Eugene S.
Liquidity Portfolio, Inc. / / Stark
2 3
1 1
/ /
9 9
7 7
Prudential Jennison Series 2 9 Eugene S.
Fund, Inc. / / Stark
1 3
9 0
/ /
9 9
7 7
Prudential MoneyMart 2 1 Grace
Assets, Inc. / 2 Torres
2 /
1 3
/ 1
9 /
7 9
7
Prudential Multi-Sector 2 4 Grace
Fund, Inc. / / Torres
1 3
9 0
/ /
9 9
7 7
Prudential Municipal Bond 2 4 Grace
Fund / / Torres
2 3
0 0
/ /
9 9
7 7
Prudential Municipal 2 8 Grace
Series Fund / / Torres
2 3
0 1
/ /
9 9
7 7
Prudential Pacific Growth 2 1 Eugene S.
Fund, Inc. / 0 Stark
2 /
1 3
/ 1
9 /
7 9
7
Prudential Special Money 2 6 Eugene S.
Market Fund, Inc. / / Stark
2 3
1 0
/ /
9 9
7 7
Prudential Structured 2 1 Eugene S.
Maturity Fund, Inc. / 2 Stark
2 /
0 3
/ 1
9 /
7 9
7
Prudential World Fund, 2 1 Grace
Inc. / 0 Torres
2 /
1 3
/ 1
9 /
7 9
7
The Global Total Return 2 1 Eugene S.
Fund, Inc. / 2 Stark
1 /
9 3
/ 1
9 /
7 9
7
The Target Portfolio Trust 2 1 Grace
/ 2 Torres
1 /
8 3
/ 1
9 /
7 9
7
First Financial Fund, Inc. 2 3 Grace
/ / Torres
1 3
8 1
/ /
9 9
7 7
The High Yield Plus Fund, 2 3 Grace
Inc. / / Torres
1 3
8 1
/ /
9 9
7 7
August 20, 1997
To the Shareholders and Board of
Directors of
Prudential Special Money Market Fund,
Inc. -
Money Market Series
In planning and performing our audit of
the financial statements of Prudential
Special Money Market Fund, Inc. - Money
Market Series (the "Fund") for the year
ended June 30, 1997, we considered its
internal control, including control
activities for safeguarding securities,
in order to determine our auditing
procedures for the purpose of expressing
our opinion on the financial statements
and to comply with the requirements of
Form N-SAR, not to provide assurance on
internal control.
The management of the Fund is
responsible for establishing and
maintaining internal control. In
fulfilling this responsibility,
estimates and judgments by management
are required to assess the expected
benefits and related costs of control
activities. Generally, control
activities that are relevant to an audit
pertain to the entity's objective of
preparing financial statements for
external purposes that are fairly
presented in conformity with generally
accepted accounting principles. Those
control activities include the
safeguarding of assets against
unauthorized acquisition, use or
disposition.
Because of inherent limitations in
internal control, errors or
irregularities may occur and not be
detected. Also, projection of any
evaluation of internal control to future
periods is subject to the risk that it
may become inadequate because of changes
in conditions or that the effectiveness
of the design and operation may
deteriorate.
Our consideration of internal control
would not necessarily disclose all
matters in internal control that might
be material weaknesses under standards
established by the American Institute of
Certified Public Accountants. A
material weakness is a condition in
which the design or operation of any
specific internal control components
does not reduce to a relatively low
level the risk that errors or
irregularities in amounts that would be
material in relation to the financial
statements being audited may occur and
not be detected within a timely period
by employees in the normal course of
performing their assigned functions.
However, we noted no matters involving
internal control, including control
activities for safeguarding securities,
that we consider to be material
weaknesses as defined above as of June
30, 1997.
This report is intended solely for the
information and use of management and
the Board of Directors of the Fund and
the Securities and Exchange Commission.
Price Waterhouse LLP
