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SIGNATURE BERNADETTE N. FINN
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> The schedule contains summary financial information
extracted from the financial statements and supporting
schedules as of the end of the most current period and is
qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000876895
<NAME> North Carolina Daily Municipal Income Fund, Inc.
<S> <C>
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> SEP-01-1996
<PERIOD-END> AUG-31-1998
<PERIOD-TYPE> 12-MOS
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<INVESTMENTS-AT-VALUE> 202106954
<RECEIVABLES> 1081464
<ASSETS-OTHER> 0
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<TOTAL-ASSETS> 203188418
<PAYABLE-FOR-SECURITIES> 2831566
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3003809
<TOTAL-LIABILITIES> 5835375
<SENIOR-EQUITY> 0
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<SHARES-COMMON-STOCK> 197354351
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<NET-ASSETS> 197353043
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6929984
<OTHER-INCOME> 0
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<REALIZED-GAINS-CURRENT> 16
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5382801
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 514655437
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</TABLE>
McGLADREY & PULLEN, L.L.P.
Certified Public Accountants & Consultants
The Board of Directors and Shareholders
North Carolina Daily Municipal Income Fund, Inc.
In planning and performing our audit of the financial statements of North
Carolina Daily Municipal Income Fund, Inc for the year ended August 31, 1997, we
considered its internal control, including controls over 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 the internal control.
The management of North Carolina Daily Municipal Income Fund, Inc. 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 controls. Generally, controls
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 controls include
safeguarding of assets against unauthorized acquistion, 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 component 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 controls for over safeguarding securities, that we consider to be
material weaknesses as defined above as of August 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
McGladrey & Pullen, LLP
New York, New York
September 30, 1997
