PENNSYLVANIA DAILY MUNICIPAL INCOME FUND INC
N-30D, 1997-07-28
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PENNSYLVANIA
DAILY MUNICIPAL                            600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND                                                        212-830-5200

===============================================================================



Dear Shareholder:


We are pleased to present the semi-annual report of Pennsylvania Daily Municipal
Income Fund for the period  December 1, 1996 through May  31,1997.

The Fund had net assets of $36,705,921  and 1,380 active  shareholders as of May
31, 1997.

Thank you for your support and we look forward to  continuing to serve your cash
management needs.




Sincerely,



\S\Steven W. Duff


Steven W. Duff
President






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PENNSYLVANIA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS
MAY 31, 1997
(UNAUDITED)

================================================================================
<TABLE>
<CAPTION>

                                                                                                                     Ratings (a)
      Face                                                                   Maturity                  Value               Standard
    Amount                                                                     Date       Yield      (Note 1)      Moody's & Poor's
    ------                                                                     ----       -----       ------       -------   ------


Other Tax Exempt Investments (16.45%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                            <C>           <C>     <C>               <C>      <C>
 $ 1,800,000   City of Philadelphia, PA TRAN - Series A 1996 to 1997          06/30/97      3.90 %  $  1,800,730      MIG-1    SP-1
     700,000   Luzerne County, PA Flood Protection Program
               MBIA Insured                                                   07/15/97      3.85         700,484      Aaa      AAA
     265,000   Pennsylvania Intergovernmental
               Cooperational Authority (PICA) - Series 1996
               FGIC Insured                                                   06/15/97      3.65         265,119      Aaa      AAA
     250,000   Pennsylvania ST Higher Education Facility Authority RB - Series F
               AMBAC Insured                                                  12/15/97      3.85         251,303      Aaa      AAA
   1,000,000   Pennsylvania Turnpike RB - Series L
               MBIA Insured                                                   06/01/97      5.95       1,000,000      Aaa      AAA
   1,000,000   Philadelphia, PA School District TRAN                          06/30/97      3.94       1,000,369      MIG-1    SP-1
   1,000,000   University of Pittsburgh, PA (University Capital Project) - Series A
               Pre-Refunded in Government Securities                          06/01/97      3.80       1,020,000               AAA
 -----------                                                                                         -----------
   6,015,000   Total Other Tax Exempt Investments                                                      6,038,005
 -----------                                                                                         -----------
<CAPTION>
Other Variable Rate Demand Instruments (c) (66.12%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                            <C>           <C>     <C>               <C>      <C>
 $   200,000   Alleghany County, PA ACES (Alleghany Hospital) - Series 1988C
               LOC PNC Bank                                                   03/01/13      3.90%   $    200,000      VMIG-1   A1+
     500,000   Alleghany, PA IDA
               (Commercial Development Parkway Center Project) - Series A
               LOC Mellon Bank N.A.                                           05/01/09      3.95         500,000               A1
   2,000,000   Beaver County, PA IDA
               LOC Barclays Bank PLC                                          08/01/20      3.80       2,000,000      P1       A1+
     700,000   Butler County, PA IDA
               (Armco Incorporated Project) - Series 1996A (b)
               LOC Chase Manhattan Bank, N.A.                                 06/01/20      4.10         700,000
   1,500,000   Chester County, PA HEFA(Barclay Friends Project) - Series A
               LOC Bank of Ireland                                            08/01/25      3.90       1,500,000      VMIG-1   A1
   2,000,000   City of York General Authority (Adjusted Rate Pooled Financing)
               LOC First Union National Bank                                  09/01/26      3.90       2,000,000               A1
   1,900,000   Clarion County, PA EDA (Piney Creek) - Series A
               LOC Swiss Bank Corp.                                           12/01/11      3.95       1,900,000      VMIG-1   A1+
     370,000   Clinton County, PA Municipal Authority HRB
               (Lock Haven Hospital Project) - Series 1991A (b)
               LOC Mellon Bank, N.A.                                          09/01/07      4.20         370,000
   1,000,000   College Township IDA
               LOC Wachovia Bank & Trust Co., N.A.                            11/01/11      3.90       1,000,000               A1+

</TABLE>

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                        See Notes to Financial Statements.

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================================================================================
<TABLE>
<CAPTION>

                                                                                                                     Ratings (a)
      Face                                                                   Maturity                  Value               Standard
    Amount                                                                     Date       Yield      (Note 1)      Moody's & Poor's
    ------                                                                     ----       -----       ------       -------   ------
Other Variable Rate Demand Instruments (c) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                            <C>           <C>     <C>              <C>        <C>
 $   500,000   Delaware County, PA IDA (Scott Paper Company) - Series A       12/01/18      3.90%   $    500,000     P1         A1+
     700,000   Delaware County, PA IDA
               (United Parcel Service Project) - Series 1985                  12/01/15      3.95         700,000     P1         A1+
   1,400,000   Delaware County, PA IDA PCRB
               (Philadelphia Electric Co.) - Series A
               LOC Toronto-Dominion Bank                                      08/01/16      3.95       1,400,000     P1         A1+
   2,000,000   Geisinger Authority, PA Health System
               (Geisinger Health System) - Series 1992B                       07/01/22      4.05       2,000,000                A1+
     400,000   Jeannette, PA Health Services Authority
               (Jeannette Corporation)
               LOC PNC Bank                                                   07/01/99      3.95         400,000     VMIG-1
     500,000   Lehigh County, PA IDA - Series 1985A
               LOC Rabobank Nederland                                         12/01/15      3.90         500,000     P1
   1,950,000   Montgomery County, PA Redevelopment Authority MHRB
               (Glenmore Associates Project)
               Fannie Mae Collateralized                                      11/15/25      3.95       1,950,000                A1+
   1,000,000   North Eastern Pennsylvania HEFA RB
               (All Health Pooled Fin. Prog.)
               LOC Chase Manhattan Bank, N.A.                                 07/01/26      4.00       1,000,000     VMIG-1
   1,000,000   Pennsylvania Higher Education Assistance Agency
               Student Loan Adjustable Rate RB - Series 1997A
               LOC Student Loan Marketing Association                         03/01/27      4.10       1,000,000     VMIG-1
    100,000    Pennsylvania State EDA (B&W Ebensburg Project)
               LOC Swiss Bank Corp.                                           12/01/11      3.95         100,000     VMIG-1
  1,100,000    Pennsylvania State Higher Education
               Assistance Agency Student Loan                                 07/01/18      3.95       1,100,000     VMIG-1     A1+
  1,200,000    Philadelphia, PA HEFA Hospital RB
               (Children's Hospital of Philadelphia) - Series A               03/01/27      4.05       1,200,000     VMIG-1     A1+
  1,000,000    Sewickley Valley Hospital Authority, PA RN
               (D.T. Watson Rehabilitation Hospital)
               LOC PNC Bank                                                   10/01/97      4.25       1,000,000     P1         A1
  1,250,000    York County, PA IDA Limited Obligation RB
               (Metal Exchange Corporation Project) (b)
               LOC Comerica Bank                                              06/01/06      4.15       1,250,000
 -----------                                                                                         -----------
 24,270,000   Total Other Variable Rate Demand Instruments                                            24,270,000
 -----------                                                                                         -----------

</TABLE>

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                        See Notes to Financial Statements.

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PENNSYLVANIA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS (CONTINUED)
MAY 31, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>

                                                                                                                     Ratings (a)
      Face                                                                   Maturity                  Value               Standard
    Amount                                                                     Date       Yield      (Note 1)      Moody's & Poor's
    ------                                                                     ----       -----       ------       -------   ------
Put Bonds (d) (7.36%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                            <C>           <C>     <C>              <C>        <C>
 $ 2,700,000   Alleghany County, PA
               LOC Canadian Imperial Bank of Commerce                         10/30/97      3.65%   $  2,700,000     P1         A1
 -----------                                                                                         -----------
   2,700,000   Total Put Bonds                                                                         2,700,000
 -----------                                                                                         -----------
<CAPTION>
Tax Exempt Commercial Paper (8.99%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                            <C>           <C>     <C>              <C>        <C>
 $ 1,500,000   Montgomery County, PA IDA PCR Refunding Bonds
               (Peco Energy Co. Project) - Series 1994 B
               LOC Deutsche Bank A.G.                                         07/16/97      3.45%   $  1,500,000     P1         A1+
   1,800,000   Venango IDA PA Resource Recovery RB
               (Scrubgrass Project) - Series A
               LOC National Westminster Bank                                  07/10/97      3.50       1,800,000     P1         A1+
 -----------                                                                                         -----------
   3,300,000   Total Tax Exempt Commercial Paper                                                       3,300,000
 -----------                                                                                         -----------
               Total Investments (98.92%) (Cost 36,308,005+)                                          36,308,005
               Cash and Other Assets, Net of Liabilities (1.08%)                                         397,916
                                                                                                     -----------
               Net Assets (100.00%)                                                                 $ 36,705,921
                                                                                                     ===========
               Net Asset Value, offering and redemption price per share:
               Class A shares,36,701,766 shares outstanding (Note 3)                                $       1.00
                                                                                                     ===========
               Class B shares,     5,097 shares outstanding (Note 3)                                $       1.00
                                                                                                     ===========


               +   Aggregate cost for federal income tax purposes is identical.







</TABLE>

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                        See Notes to Financial Statements.

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================================================================================


FOOTNOTES:
(a)  The ratings  noted for variable  rate demand  instruments  are those of the
     bank whose letter of credit  secures such  instruments  or guarantor of the
     bond. P1 and A1+ are the highest ratings assigned for tax exempt commercial
     paper.
(b)  Securities  that are not rated have been  determined by the Fund's Board of
     Trustees to be of comparable  quality to the rated  securities in which the
     Fund may invest.
(c)  Securities  payable on demand at par including  accrued  interest  (usually
     with seven days notice) and where indicated are unconditionally  secured as
     to principal  and interest by a bank letter of credit.  The interest  rates
     are  adjustable  and are based on bank prime rates or other  interest  rate
     adjustment  indices.  The rate  shown is the rate in  effect at the date of
     this statement.
(d)   The maturity date indicated for the put bonds is the next put date.
<TABLE>
<CAPTION>
KEY:
    <S>      <C> <C>                                             <C>      <C>  <C>
     EDA      =   Economic Development Authority                  TRAN     =    Tax and Revenue Anticipation Note
     HEFA     =   Health & Education Finance Authority            MHRB     =    Muti-family Housing Revenue Bond
     HRB      =   Hospital Revenue Bond                           PCRB     =    Pollution Control Revenue Bond
     IDA      =   Industrial Development Authority                RB       =    Revenue Bond
                                                                  RN       =    Revenue Note







</TABLE>

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                        See Notes to Financial Statements.

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PENNSYLVANIA DAILY MUNICIPAL INCOME FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>


INVESTMENT INCOME
<S>                                                                             <C>

Income:
    Interest.................................................................... $   702,828
                                                                                  ----------
Expenses: (Note 2)
    Investment management fee...................................................      76,733
    Administration fee..........................................................      40,285
    Distribution fee............................................................      47,952
    Custodian fee...............................................................       2,458
    Shareholder servicing and related shareholder expenses......................      20,487
    Legal, compliance and filing fees...........................................       5,375
    Audit and accounting........................................................      21,892
    Trustees' fees..............................................................       3,000
    Amortization of organization expenses.......................................       4,910
    Other.......................................................................       1,009
                                                                                  ----------
      Total expenses............................................................     224,101
      Less: Fees waived (Note 2)................................................ (    89,826)
                                                                                  ----------
      Net expenses..............................................................     134,275
                                                                                  ----------
Net investment income...........................................................     568,553

<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S>                                                                             <C>
 Net realized gain (loss) on investments........................................       -0-
                                                                                  ----------
 Increase in net assets from operations......................................... $   568,553
                                                                                  ==========

</TABLE>






- --------------------------------------------------------------------------------
                        See Notes to Financial Statements.





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PENNSYLVANIA DAILY MUNICIPAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
                                                                       Six Months
                                                                          Ended                    Year
                                                                      May 31, 1997                Ended
                                                                       (Unaudited)          November 30, 1996
                                                                        ---------           -----------------


INCREASE (DECREASE) IN NET ASSETS
<S>                                                                  <C>                     <C>
 Operations:
    Net investment income.........................................    $    568,553            $   1,189,585
    Net realized gain (loss) on investments.......................         -0-                      -0-
                                                                      ------------            -------------
 Increase in net assets from operations............................        568,553                1,189,585
 Dividends to shareholders from net investment income:
    Class A.......................................................   (     568,472)*         (    1,189,561)*
    Class B.......................................................   (          81)*         (           24)*
 Capital share transactions (Note 3)
     Class A......................................................         365,869           (    4,645,246)
     Class B......................................................              80                    5,017
                                                                      ------------            -------------
        Total increase (decrease).................................         365,949           (    4,640,229)
 Net assets:
    Beginning of period...........................................      36,339,972               40,980,201
                                                                      ------------            -------------
    End of period.................................................    $ 36,705,921            $  36,339,972
                                                                      ============            =============

*    Designated as exempt-interest dividends for federal income tax purposes.


</TABLE>






- --------------------------------------------------------------------------------
                        See Notes to Financial Statements.





<PAGE>
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PENNSYLVANIA DAILY MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================

1. Summary of Accounting Policies.

Pennsylvania  Daily Municipal Income Fund, a Massachusetts  business trust, is a
no-load,  non-diversified,  open-end  management  investment  company registered
under the Investment  Company Act of 1940. This Fund is a short term, tax exempt
money market  fund.  The Fund has two classes of stock  authorized,  Class A and
Class B. The  Class A shares  are  subject  to a  service  fee  pursuant  to the
Distribution  and Service Plan.  The Class B shares are not subject to a service
fee.  Additionally,  the Fund may allocate among its classes certain expenses to
the extent  allowable  to  specific  classes,  including  transfer  agent  fees,
government   registration   fees,   certain  printing  and  postage  costs,  and
administrative  and legal  expenses.  Class  specific  expenses of the Fund were
limited to  distribution  fees and minor transfer agent  expenses.  In all other
respects  the  Class A and Class B shares  represent  the same  interest  in the
income  and assets of the Fund.  Distribution  for Class B shares  commenced  on
October 10, 1996 and all Fund shares  outstanding  before  October 10, 1996 were
designated as Class A shares.  The Fund's  financial  statements are prepared in
accordance  with  generally  accepted   accounting   principles  for  investment
companies as follows:

     a) Valuation of Securities -
     Investments are valued at amortized cost.  Under this valuation  method,  a
     portfolio  instrument  is valued at cost and any  discount  or  premium  is
     amortized  on a  constant  basis to the  maturity  of the  instrument.  The
     maturity of variable rate demand  instruments is deemed to be the longer of
     the period  required  before the Fund is entitled to receive payment of the
     principal  amount or the  period  remaining  until the next  interest  rate
     adjustment. 

     b) Federal Income Taxes -
     It is the Fund's  policy to comply with the  requirements  of the  Internal
     Revenue Code applicable to regulated investment companies and to distribute
     all of its tax exempt and taxable income to its shareholders. Therefore, no
     provision for federal income tax is required.

     c) Dividends and Distributions -
     Dividends from investment  income  (excluding  capital gains and losses, if
     any, and  amortization  of market  discount)  are  declared  daily and paid
     monthly.  Distributions of net capital gains, if any,  realized on sales of
     investments are made after the close of the Fund's fiscal year, as declared
     by the Fund's Board of Trustees.

     d) Use of Estimates -
     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that effect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial statements and the reported amounts of increases and decreases in
     net assets from  operations  during the reporting  period.  Actual  results
     could differ from those estimates.

     e) General -
     Securities transactions are recorded on a trade date basis. Interest income
     is  accrued  as  earned.   Realized   gains  and  losses  from   securities
     transactions are recorded on the identified cost basis.

2. Investment Management Fees and Other Transactions with Affiliates.

Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager), equal to .40% of the Fund's
average daily net assets.


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================================================================================
2.   Investment   Management  Fees  and  Other   Transactions   with  Affiliates
(Continued).

Pursuant to an Administrative  Services Contract the Fund pays to the Manager an
annual fee of .21% of the Fund's average daily net assets not in excess of $1.25
billion,  plus .20% of such assets in excess of $1.25  billion but not in excess
of $1.5 billion, plus .19% of such assets in excess of $1.5 billion.

Pursuant to a  distribution  and  service  plan  adopted  under  Securities  and
Exchange  Commission Rule 12b-1,  the Fund and Reich & Tang  Distributors  L.P.,
(the Distributor), an affiliate of the Manager, have entered into a Distribution
Agreement  and a Shareholder  Servicing  Agreement.  For its services  under the
Shareholder  Servicing  Agreement,  the Distributor receives from the Fund a fee
equal to .25% of the Fund's  average daily net assets.  There were no additional
expenses borne by the Fund pursuant to the Distribution Plan.

For the period  ended May 31, 1997 the  Manager  voluntarily  waived  investment
management fees and administration fees of $51,460 and $38,366, respectively.

Included in the Statement of Operations under the caption "Shareholder servicing
and  related  shareholder  expenses"  are fees of  $12,321  paid to Reich & Tang
Services L.P., an affiliate of the Manager, as servicing agent for the Fund.

Fees are paid to Trustees who are unaffiliated  with the Manager on the basis of
$1,000 per annum plus $250 per meeting attended.

3. Capital Stock.

At May 31, 1997, an unlimited number of shares of beneficial  interest ($.01 par
value) were authorized and capital paid in amounted to $36,706,863. Transactions
in capital stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
    
                                                  Six Months                              Year
Class A                                              Ended                                Ended
- -------                                          May 31, 1997                      November 30, 1996
                                                --------------                     -----------------
<S>                                             <C>                                <C>
Sold                                               56,513,746                         150,377,896
Issued on reinvestment of dividends.......            474,179                             932,450
Redeemed..................................       ( 56,622,056)                      ( 155,955,592)
                                                  -----------                        ------------
Net increase (decrease)...................            365,869                       (   4,645,246)
                                                  ===========                        ============
<CAPTION>
    
                                                  Six Months                         October 10, 1996
Class B                                              Ended                      (Commencement of Sales) to
- -------                                          May 31, 1997                       November 30, 1996
                                                --------------                      -----------------
<S>                                             <C>                                 <C>
Sold......................................              --                                  5,100
Issued on reinvestment of dividends.......                 80                                  17
Redeemed..................................              --                           (        100)
                                                  -----------                        ------------
Net increase (decrease)...................                 80                               5,017
                                                  ===========                        ============


</TABLE>
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PENNSYLVANIA DAILY MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
4. Sales of Securities.

Accumulated undistributed realized losses at May 31, 1997 amounted to $942. This
amount  represents  tax basis  capital  losses  which may be carried  forward to
offset future gains.  Such losses expire between  November 30, 2000 and November
30, 2001.

5. Concentration of Credit Risk.

The Fund invests primarily in obligations of political subdivisions of the State
of Pennsylvania and, accordingly,  is subject to the credit risk associated with
the non-performance of such issuers.  Approximately 63% of these investments are
further  secured,  as to principal and interest,  by letters of credit issued by
financial  institutions.  The Fund maintains a policy of monitoring its exposure
by  reviewing  the  credit  worthiness  of the  issuers,  as well as that of the
financial institutions issuing the letters of credit, and by limiting the amount
of holdings with letters of credit from one financial institution. 

6. Financial Highlights.
<TABLE>
<CAPTION>

                                                                          Year Ended November 30,             December 16, 1992
                                                   Six Months      -------------------------------------      (Commencement of
Class A                                              Ended                                                      Operations) to
- -------                                           May 31, 1997       1996            1995         1994         November 30, 1993
                                                 --------------    --------        --------     --------       -----------------   
<S>                                              <C>              <C>            <C>          <C>                  <C>          
 Per Share Operating Performance:
 (for a share outstanding throughout the period)

 Net asset value, beginning of period..........   $   1.00         $   1.00       $   1.00     $   1.00             $   1.00    
                                                   --------         --------       --------     --------             --------    
 Income from investment operations:
   Net investment income.......................       0.015            0.030          0.034        0.024                0.022   

 Less distributions:
   Dividends from net investment income........   (   0.015)       (   0.030)     (   0.034)   (   0.024)           (   0.022)  
                                                   --------         --------       --------     --------             --------   
 Net asset value, end of period.                  $   1.00         $   1.00       $   1.00     $   1.00             $   1.00    
                                                  =========        =========       =========    =========           =========  
 Total Return..................................       3.02%*           3.01%          3.50%        2.44%                2.28%    

 Ratios/Supplemental Data
 Net assets, end of period (000)                  $  36,701       $   36,335     $   40,980   $   43,559           $   38,817  

 Ratios to average net assets:
   Expenses....................................       0.70%*           0.68%          0.59%        0.49%                0.22%   
   Net investment income.......................       2.96%*           2.97%          3.44%        2.44%                2.26%   
   Management administration & shareholder
       servicing fee waived....................       0.47%*           0.49%          0.61%        0.68%                0.85%   
   Expenses reimbursed.........................        -               -              -            -                    0.33%    
   Expense offsets.............................       0.00%            0.01%          -            -                    -
 
*Annualized


- --------------------------------------------------------------------------------
<PAGE>

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================================================================================
<CAPTION>
6. Financial Highlights. (Continued)
                                                             Six                             October 10, 1996
                                                           Months                           (Commencement of 
Class B                                                    Ended                               (Offering) to  
- -------                                                 May 31, 1997                         November 30, 1996
                                                        ------------                         -----------------  
<S>                                                     <C>                                 <C>
Per Share Operating Performance:
 (for a share outstanding throughout the period)

 Net asset value, beginning of period..........          $   1.00                            $   1.00      
                                                         ---------                           ---------     
 Income from investment operations:
   Net investment income.......................              0.016                               0.005         

 Less distributions:
   Dividends from net investment income........          (   0.016)                          (   0.005)     
                                                          --------                           ---------     
 Net asset value, end of period.                         $   1.00                            $   1.00       
                                                         =========                           =========       
 Total Return..................................              3.29%*                              3.25%*         

 Ratios/Supplemental Data
 Net assets, end of period (000)                         $       5                           $       5    

 Ratios to average net assets:
   Expenses....................................              0.44%*                              0.42%*         
   Net investment income.......................              3.24%*                              3.21%*        
   Management administration fee waived........              0.47%*                              0.27%*         
   Expenses offsets............................              0.00%                               0.01%*         

  *  Annualized
  
</TABLE>

  






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<PAGE>


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

- ------------------------------------------------------
This report is submitted for the general  information
of  the   shareholders   of  the  Fund.   It  is  not
authorized for distribution to prospective  investors
in the Fund  unless  preceded  or  accompanied  by an
effective  prospectus,   which  includes  information
regarding   the  Fund's   objectives   and  policies,
experience  of  its  management,   marketability   of
shares, and other information.
- ------------------------------------------------------



  Pennsylvania Daily Municipal Income Fund
     600 Fifth Avenue
     New York, New York 10020


  Manager
     Reich & Tang Asset Management L.P.
     600 Fifth Avenue
     New York, New York 10020


  Custodian
     Investors Fiduciary Trust Company
     127 West 10th Street
     Kansas City, Missouri 64105


  Transfer Agent & Dividend
  Disbursing Agent
     Reich & Tang Services L.P.
     600 Fifth Avenue
     New York, New York 10020

- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------

PENNSYLVANIA
DAILY
MUNICIPAL
INCOME
FUND






                                  Semi-Annual Report
                                    May 31, 1997
                                     (Unaudited)
                                  

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<PAGE>



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