LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that during the latest six-month period ended
August 31, 1994, mostly through the second half of the period, the yield from
Dreyfus BASIC Money Market Fund rose steadily along with the general rise in
interest rates throughout the economy.
This increase, of course, can be attributed to the series of steps taken
by the Federal Reserve Board to tighten interest rates, as a way of
restraining the threat of inflation from increased economic activity in the
U.S. and among major trading nations abroad.
The Fund's annualized yield for the this period was 3.97%, the equivalent
of an annualized effective yield of 4.04% after taking into account the
effect of compounding.*
To take maximum advantage of the repeated increases in interest rates, we
have kept the average maturities of your Fund's portfolio shorter, so that
maturing instruments could be readily replaced with new ones at higher
yields.
We intend to continue this strategy as long as we expect yields to
continue in an uptrend.
How long this will continue to be the case is difficult to forecast. At
the level of wholesale goods and primary materials prices, inflation is
clearly evident. As one example, the Commodities Research Bureau's spot price
index of raw industrial materials is up 22% from its 1993 low. The most
recent release by the Federal Reserve showed a sharp rise in the capacity
utilization rate to the highest level since 1989, approaching the break-even
level for inflation.
These price pressures, however, have not yet appeared in full force at
the retail level.
In view of the way the Federal Reserve has been putting on the brakes, it
would be no surprise if the economy paused to catch its breath. In just six
months, the central bank authorities have increased the Federal Funds rate
from 3% last January to 4 3/4% by the end of August, and the discount rate
from 3% to 4%.
As the past six months demonstrate, your Fund is well geared to keep pace
with these shifts in rates. As always, our objective continues to be to
obtain the best yields for you, while always emphasizing protection of the
underlying principal.
It is a pleasure to serve you in this way and we look forward to
continued opportunities to assist with your investment program.
Sincerely,
(Patricia A. Larkin Signature Logo)
Patricia A. Larkin
Portfolio Manager
September 22, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS AUGUST 31, 1994 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-27.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
Bank of Tokyo Ltd. (Yankee)
4.52%-4.55%, 9/1/94-9/12/94............................................. $ 30,000,000 $ 30,000,000
Chase Manhattan Bank N.A. (London)
5.06%,12/28/94.......................................................... 17,000,000 17,000,000
Dai-Ichi Kangyo Bank Ltd. (London)
4.55%-5.05%, 9/15/94-12/19/94........................................... 20,000,000 19,992,255
Dai-Ichi Kangyo Bank Ltd. (Yankee)
4.82%-5.03%,12/12/94-12/28/94........................................... 49,000,000 48,995,214
Industrial Bank of Japan Ltd.(London)
5.28%, 3/1/95........................................................... 15,000,000 15,000,674
Industrial Bank of Japan Ltd. (Yankee)
3.45%-5.06%, 10/12/94-1/5/95............................................ 65,000,000 65,000,000
Mitsubishi Bank Ltd. (Yankee)
3.50%-5.00%, 9/23/94-12/28/94........................................... 83,000,000 83,000,000
NationsBank of North Carolina N.A. (London)
3.55%, 10/17/94......................................................... 10,000,000 10,000,000
Norinchukin Bank (London)
4.80%-5.07%, 11/30/94-12/14/94.......................................... 35,000,000 35,004,087
Norinchukin Bank (Yankee)
3.51%, 9/27/94.......................................................... 15,000,000 15,000,105
Old Kent Bank & Trust
3.50%, 10/6/94.......................................................... 10,000,000 10,000,000
Sanwa Bank Ltd. (London)
4.82%, 11/30/94......................................................... 6,000,000 6,001,086
Sanwa Bank Ltd. (Yankee)
4.54%, 9/9/94........................................................... 10,000,000 9,999,779
Societe Generale (Yankee)
3.58%, 10/25/94......................................................... 10,000,000 9,999,705
Sumitomo Bank Ltd. (Yankee)
4.59%-5.24%, 9/12/94-2/27/95............................................ 40,000,000 40,000,933
SwedBank (Yankee)
3.88%-5.00%, 9/6/94-1/13/95............................................. 48,000,000 48,000,000
--------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $462,993,838)..................................................... $ 462,993,838
==============
BANKERS' ACCEPTANCES-4.9%
Bank of Tokyo Ltd. (Yankee)
4.57%-5.00%, 9/19/94-12/27/94........................................... $ 44,550,000 $ 44,305,498
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.03%-5.07%, 12/20/94-1/30/95........................................... 12,400,000 12,179,212
Sanwa Bank Ltd. (Yankee)
4.83%-5.07%, 11/1/94-12/27/94........................................... 16,500,000 16,307,979
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994 (UNAUDITED)
PRINCIPAL
BANKERS' ACCEPTANCES (CONTINUED) AMOUNT VALUE
-------------- --------------
Sumitomo Bank Ltd. (Yankee)
4.58%-4.83%, 9/19/94-11/4/94............................................ $ 10,150,000 $ 10,096,317
==============
TOTAL BANKERS' ACCEPTANCES (cost $82,889,006)............................... $ 82,889,006
==============
COMMERCIAL PAPER-31.6%
AES Shady Point Inc.
5.03%-5.20%, 12/21/94-1/11/95 (a)....................................... $ 33,879,000 $ 33,310,359
Bankers Trust New York Corp.
3.45%-3.51%, 9/15/94-10/14/94........................................... 30,000,000 29,906,433
CS First Boston Inc.
5.03%-5.08%, 12/19/94-1/31/95........................................... 65,000,000 63,906,308
Ford Motor Credit Co.
4.88%, 11/16/94......................................................... 25,000,000 24,746,667
General Electric Capital Corp.
5.11%, 3/10/95.......................................................... 10,000,000 9,740,333
General Electric Capital Services Inc.
5.11%, 3/14/95.......................................................... 5,000,000 4,867,433
General Motors Acceptance Corp.
4.67%-5.23%, 9/15/94-2/6/95............................................. 78,000,000 77,041,425
ITT Financial Corp.
4.51%-4.54%, 9/8/94-9/12/94............................................. 30,000,000 29,968,767
Internationale Nederlanden (U.S.) Funding Corp.
5.24%, 2/17/95.......................................................... 25,000,000 24,401,458
Lehman Brothers Holdings Inc.
3.45%-5.25%, 9/16/94-3/17/95............................................ 45,000,000 44,354,273
NEC Industries Inc.
4.51%, 9/6/94 (a)....................................................... 23,000,000 22,985,689
NYNEX Corp.
4.93%-4.94%, 11/28/94-11/29/94.......................................... 42,000,000 41,498,413
PaineWebber Group Inc.
4.78%-5.25%, 10/27/94-1/18/95........................................... 87,000,000 85,670,363
Repsol International Finance B.V.
5.02%, 12/13/94......................................................... 25,000,000 24,648,083
Toronto Dominion Holdings USA Inc.
5.12%, 1/3/95........................................................... 25,000,000 24,572,028
--------------
TOTAL COMMERCIAL PAPER (cost $541,618,032).................................. $ 541,618,032
==============
CORPORATE NOTES-19.0%
Bankers Trust New York Corp.
4.88%, 3/17/95 (b)...................................................... $ 25,000,000 $ 24,991,904
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994 (UNAUDITED)
PRINCIPAL
CORPORATE NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
Bear Stearns Companies Inc.
4.87%, 8/25/95 (b)...................................................... $ 50,000,000 $ 50,000,000
Chemical Banking Corp.
4.82%, 4/27/95.......................................................... 24,000,000 24,028,720
FCC National Bank (Delaware)
4.82%, 2/22/95 (b)...................................................... 40,000,000 39,988,883
Ford Motor Credit Co.
3.77%-4.97%, 12/12/94-3/2/95............................................ 19,225,000 19,358,793
General Motors Acceptance Corp.
4.66%, 9/16/94.......................................................... 6,300,000 6,307,395
Lehman Brothers Holdings Inc.
5.50%, 6/5/95 (b)....................................................... 35,000,000 35,000,000
Merrill Lynch & Co. Inc.
4.87%-5.33%, 1/12/95-4/27/95 (b)........................................ 65,000,000 65,000,000
PHH Corp.
4.83%, 3/10/95 (b)...................................................... 60,000,000 60,000,000
--------------
TOTAL CORPORATE NOTES (cost $324,675,695)................................... $ 324,675,695
==============
PROMISSORY NOTES-4.8%
Goldman Sachs Group L.P.
3.50%-5.31%, 9/28/94-3/14/95 (c,d)
(cost $82,500,000)...................................................... $ 82,500,000 $ 82,500,000
==============
SHORT-TERM BANK NOTES-3.2%
FCC National Bank (Delaware)
4.82%, 3/14/95.......................................................... $ 20,000,000 $ 19,994,656
First National Bank of Chicago
4.81%, 10/26/94 (b)..................................................... 15,000,000 15,000,000
PNC Bank N.A.
3.72%, 12/15/94......................................................... 20,000,000 19,996,065
--------------
TOTAL SHORT-TERM BANK NOTES
(cost $54,990,721)...................................................... $ 54,990,721
==============
U.S. GOVERNMENT AGENCIES-4.5%
Federal Farm Credit Banks
Floating Rate Notes
5.00%, 5/10/95 (b)...................................................... $ 10,000,000 $ 10,000,000
Federal Home Loan Banks
Floating Rate Notes
5.33%, 1/31/97(b)....................................................... 5,000,000 5,000,000
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994 (UNAUDITED)
PRINCIPAL
U.S. GOVERNMENT AGENCIES (CONTINUED) AMOUNT VALUE
-------------- --------------
Federal National Mortgage Association
Discount Notes
3.54%, 10/20/94......................................................... $ 20,000,000 $ 19,906,353
Federal National Mortgage Association
Floating Rate Notes
2.98%-5.23%, 10/7/94-2/14/97 (b)........................................ 39,000,000 39,003,899
Student Loan Marketing Association
Floating Rate Notes
4.91%-5.01%, 3/20/95-8/7/95 (b)......................................... 3,250,000 3,251,575
--------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $77,161,827)........................... $ 77,161,827
==============
TIME DEPOSIT-3.0%
Bayerische Vereinsbank AG
(Grand Cayman)
4.94%, 9/1/94
(cost $51,100,000)...................................................... $ 51,100,000 $ 51,100,000
==============
REPURCHASE AGREEMENT-2.9%
Daiwa Securities America Inc., 4.80%
dated 8/31/94, due 9/1/94 in the amount of $50,006,667
(fully collateralized by $29,190,000 U.S. Treasury
Notes 3.875%, due 4/30/95, and $21,155,000 U.S.
Treasury Bills due 12/31/94, value $50,549,136)
(cost $50,000,000)...................................................... $ 50,000,000 $ 50,000,000
==============
TOTAL INVESTMENTS (cost $1,727,929,119)........................... 100.9% $1,727,929,119
====== ==============
LIABILITIES, LESS CASH AND RECEIVABLES............................ (.9%) $ (14,740,431)
====== ==============
NET ASSETS........................................................ 100.0% $1,713,188,688
====== ==============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by irrevocable letter of credit.
(b) Variable interest rate - subject to periodic change.
(c) Securities restricted as to public resale. These securities were
acquired from 1/11/94 to 8/30/94 at a cost of par value. At August 31,
1994, the aggregate value of these securities is $82.5 million,
representing approximately 4.8% of net assets and are valued at amortized
cost.
(d) This note was acquired for investment, not with the intent to
distribute or sell.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value-Note 1(a,b)......................... $1,727,929,119
Cash.................................................................... 2,857,965
Interest receivable..................................................... 9,019,275
Prepaid expenses........................................................ 115,557
--------------
1,739,921,916
LIABILITIES:
Payable for investment securities purchased............................. $24,882,234
Payable for Common Stock redeemed....................................... 1,248,379
Accrued expenses........................................................ 602,615 26,733,228
------------- --------------
NET ASSETS ................................................................ $1,713,188,688
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,713,275,993
Accumulated net realized (loss) on investments.......................... (87,305)
--------------
NET ASSETS at value applicable to 1,713,275,993 outstanding shares of
Common Stock, equivalent to $1.00 per share (3 billion shares of
$.001 par value authorized)............................................. $1,713,188,688
==============
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1994 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 31,217,920
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,765,796
Shareholder servicing costs-Note 2(b)................................. 665,831
Registration fees..................................................... 212,074
Custodian fees........................................................ 71,923
Professional fees..................................................... 33,593
Prospectus and shareholders' reports.................................. 14,387
Directors' fees and expenses-Note 2(c)................................ 8,789
Miscellaneous......................................................... 16,931
-------------
4,789,324
Less-management fee waived due to undertaking-Note 2(a)............... 3,765,796
-------------
TOTAL EXPENSES.................................................... 1,023,528
--------------
INVESTMENT INCOME-NET....................................................... 30,194,392
NET REALIZED GAIN ON INVESTMENTS-Note 1(b).................................. 2,880
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 30,197,272
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
FEBRUARY 28, AUGUST 31, 1994
1994 (UNAUDITED)
--------------- ---------------
OPERATIONS:
<S> <C> <C>
Investment income-net............................................. $ 34,971,459 $ 30,194,392
Net realized gain on investments.................................. 2,011 2,880
--------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 34,973,470 30,197,272
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................. (35,108,645) (30,194,392)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold..................................... 1,904,044,188 1,450,294,461
Dividends reinvested.............................................. 32,950,757 28,172,023
Cost of shares redeemed........................................... (1,454,177,330) (982,312,226)
--------------- ---------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.......... 482,817,615 496,154,258
--------------- ---------------
TOTAL INCREASE IN NET ASSETS................................ 482,682,440 496,157,138
NET ASSETS:
Beginning of period............................................... 734,349,110 1,217,031,550
--------------- ---------------
End of period..................................................... $ 1,217,031,550 $ 1,713,188,688
=============== ===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET 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.
YEAR ENDED FEBRUARY 28, SIX MONTHS ENDED
----------------------- AUGUST 31, 1994
PER SHARE DATA: 1993(1) 1994 (UNAUDITED)
------- -------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period....................... $1.0000 $1.0001 $ .9999
------- -------- -------
INVESTMENT OPERATIONS:
Investment income-net...................................... .0325 .0333 .0200
Net realized gain (loss) on investments.................... (.0001) -- --
------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS......................... .0324 .0333 .0200
------- -------- -------
DISTRIBUTIONS;
Dividends from investment income-net....................... (.0323) (.0335) (.0200)
------- -------- -------
Net asset value, end of period............................. $1.0001 $ .9999 $ .9999
------- -------- -------
TOTAL INVESTMENT RETURN 3.80%(2) 3.40% 4.01%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... -- .10% .14%(2)
Ratio of net investment income to average net assets....... 3.66%(2) 3.33% 4.01%(2)
Decrease reflected in above expense ratios due to undertakings
by the Manager........................................... .71%(2) .55% .50%(2)
Net Assets, end of period (000's Omitted).................. $734,349 $1,217,032 $1,713,189
- --------------------------
(1) From April 24, 1992 (commencement of operations) to February 28, 1993.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair
value of the Fund's investments.
(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 is recognized on the accrual basis. Cost of investments represents
amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodian and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. 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 Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(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, 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, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $90,000
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to February 28, 1994. If not
applied, the carryover expires in fiscal 2002.
At August 31, 1994, 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).
DREYFUS BASIC MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .50 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. The most stringent state
expense limitation applicable to the Fund presently requires reimbursement of
expenses in any full fiscal year that such expenses (excluding certain
expenses as described above) exceed 2 1/2% of the first $30 million, 2% of
the next $70 million and 1 1/2% of the excess over $100 million of the
average value of the Fund's net assets in accordance with California "blue
sky" regulations. However, the Manager had undertaken from March 1, 1994
through October 4, 1994 to waive receipt of the management fee payable to it
by the Fund, and thereafter had undertaken through October 17, 1994 to reduce
the management fee paid by the Fund, to the extent that the Fund's aggregate
expenses (excluding certain expenses as described above) exceeded specified
annual percentage of the Fund's average daily net assets. The Manager has
currently undertaken from October 18, 1994 though December 31, 1994 or until
such time as the net assets of the Fund exceed $2 billion, regardless of
whether they remain at that level, to waive receipt of the management fee
payable to it by the Fund in excess of an annual rate of .10 of 1% of the
Fund's average daily net assets. The management fee waived, pursuant to the
undertaking, amounted to $3,765,796 for the six months ended August 31, 1994.
In addition, the Manager has undertaken through June 30, 1996, to reduce
the management fee paid by the Fund, to the extent that the Fund's aggregate
annual expenses (excluding certain expenses as described above) exceed an
annual rate of .45 of 1% of the average annual daily value of the Fund's net
assets.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
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 six months
ended August 31, 1994, the Fund was charged an aggregate of $442,027 pursuant
to the Shareholder Services Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $1,500 and an attendance fee of $250 per meeting.
DREYFUS BASIC MONEY MARKET FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC MONEY MARKET FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus BASIC Money Market Fund, Inc., including the statement of
investments, as of August 31, 1994, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended August 31, 1994. These financial statements and financial highlights
are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
February 28, 1994 and financial highlights for each of the two years in the
period ended February 28, 1994 and in our report dated April 6, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
Ernst & Young LLP
New York, New York
September 26, 1994
(Dreyfus Lion Logo)
BASIC
Money Market
Fund, Inc.
Semi-Annual
Report
August 31, 1994
(Dreyfus Lion "D" Logo)
DREYFUS BASIC
MONEY MARKET FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 123SA948
